Financial/Cash Flow Planning

“Cash is King” both at home and in business. Although budgets are crucial, the non-cash portions of your budgets are often of little use in helping your business determine whether you’ll run out of cash in a given period.  Which is why Cash Flow Planning is paramount to running a successful small business and should be an essential part of your business plan. 

Cash Flow Planning is when you forecast your short & long term business expenses against the projected incoming cash.  It allows you to prepare for cash short falls by creating a cash flow cushion, for unexpected expenses or seasonal activity.  For existing businesses we will use your actual data to chart out the monthly income and expenses.  If you are just opening your business, we will develop a monthly budget based on market research, development, and your anticipated expenses.  

Cash Flow Planning will give you a good idea what your bank balance will be 6 months from now, it will also illustrate the impact of an increase in sales or the additional cost of new equipment and/or services. Having a well-documented budget and cash flow plan will aid you in your efforts to obtain additional financing from a bank or investor.

Budgeting/Cash Flow Planning helps you with:

  •  Uses of CashForecasting cash revenue, not necessarily sales
  •  Projecting additional revenues from new services, equipment, salesman
  •  Projecting additional costs from new services, equipment, salesman
  •  Attaining minimum levels of cash reserves
  •  Preparing you for acquiring additional capital 
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