Cash Forecasting enables you to predict peaks and troughs in your cash balance. It
helps you to plan how much and when to borrow and how much available cash
you're likely to have at a given time.
The Cash forecast identifies the sources and amounts of cash coming into your business and the destinations and amounts of cash going out over a given period. The forecast is usually done for a year or quarter in advance and divided into weeks or months. In extremely difficult cashflow situations, a daily cashflow forecast might be useful. The forecast should list:
- receipts - any money that will come in during that period
- payments - any money that will go out during that period
- excess of receipts over payments - with negative figures shown in brackets
- bank balance at the start of the period
- bank balance at the end of the period
With extensive knowledge of forecasting and modelling allied to professional forecasting software, we are able to produce reliable and readily understood forecasts that can be used to monitor on-going business performance.
Made to Measure Accounting to meet your Needs