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Accurate Cashflow Forecast

cashflow Jul 05, 2016


Last month I met with three clients to discuss, among other things, their cashflow – or at least for one of them . . . the lack thereof.

As a business consultant, to meet with a client and NOT ask about their Cashflow would be like you visiting your doctor and NOT being asked how you are feeling!

Cashflow is the lifeblood of any business. A savvy business owner is well advised to get a firm grasp on the concepts and best practices of Cashflow Forecasting.

In this article I will introduce you to our 3-part process for developing an effective and accurate Cashflow Forecast. It involves Activities Planning, Collections Forecasting and finally, Cash Management.

Just to be clear, what I’m referring to in this article is the cash coming into your business, AND the cash going OUT.

When many people first hear about Cashflow Forecasting, their mind immediately races to forecasting sales and collections – which is only a part of the equation – and a small part at that!...

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