When running a business, it is important to understand the ins and outs of cash flow forecasting! It is the best way of keeping on top of finances and changes and helps you predict and plan for the future! At Future Cloud, we check our forecast monthly – and here’s how you can too…
1. Start Simple
Sometimes, the best way to start is right under your nose! Simple spreadsheets are a great way to get you used to thinking about the flow of your bank. When you have this figured out, then, you can implement different tools and add-ons. It can be overwhelming at first if it is new to you, but starting small can help develop your understanding.
2. Get Into the Habit of Checking Your Cashflow Monthly
No matter the size of your business, every business can benefit from a cash flow forecast. This is because you need to be on top of your financial decisions before improvements can be made. Holding yourself accountable is also crucial to growth. Recognising where changes need to be made, and taking responsibility is the only way you can move in the right direction. This will also help you plan in advance for more costly months. It can be uncomfortable to do this, but a monthly plan will give you a fresh start and a new outlook.
3. Set Some Goals
This can help increase your cash flow but also give you milestones to look forward to…and back on! It’s a great way to track progress and can give your team a sense of achievement when goals are met. You can also track which areas of your cashflow have seen the biggest improvements.
If you need any advice with cash flow forecasting, or if you have any questions please contact us at info@future-cloud.co.uk.
