What is a Cash Flow Forecast?
A cash flow forecast is an informed estimate of your company’s cash flow (the cash coming into and out of your business).
Cash flow is one of the most important factors in determining whether a business succeeds or fails. Unfortunately, most business owners focus on Sales and Revenue and forget about the importance of “cash in the bank”
Without accurate cash flow planning and projections, it causes business owners to ‘fly blind’. Continuously dodging and weaving cash speed bumps in their business.
Cash is the air that all small businesses need to survive. This service allows you to ensure you are managing your cash flow effectively to improve your chances of long-term success.
At New Wave, we assist our clients with cash flow forecasting, planning, and strategies.
Does Your Business Have A Cash Flow Projection?
In Australia, small businesses are constantly facing significant cash flow challenges. A recent study by Xero revealed that 60% of small businesses surveyed are grappling with cash flow issues, with 14% facing major difficulties. Additionally, research shows, that 30% of small businesses are struggling to meet their financial commitments throughout 2023. These financial strains are not without consequence; the construction, ecommerce, restaurants, gyms, and warehousing industry has seen a particularly high impact, with 64.4% of businesses that started in 2019 ceasing operations by June 2023. A broader view reveals that 70% of small businesses fail by their 10th year, with 82% of these failures attributed to cash flow problems. It’s also notable that 33% of small business owners cite a lack of capital as their biggest challenge, and 60% of small businesses are not profitable.
Get the Best Cash Flow Management for your Business
Cash flow is the number one aspect of any business, so we want to sit down with you and plan out opportunities, review risks before they happen, and make sure you are financially stable throughout the whole process.
As always, we will simplify the process for you and give you the information you need to confidently take action within your business and run it at a high level without worrying about what’s going to happen in the coming months.
We use the most advanced accounting software, Xero, to take action in a streamlined and efficient manner.
Cash flow forecasting and management is an investment in your business.
Ask yourself the following:
- As a business owner, does any of this sound familiar?
- Do you feel like you’re moving forward with your business?
- Are you unsure how much money your business is making?
- Do you know how much money is in the bank?
- Is your current strategy working?
What if we showed you 12 months of what could potentially happen in your business? You could be confident in your business’s ability to grow or simply be happy that you are in a good place and relieve stress and anxiety.
If you would like a cash flow forecast for your business, contact our team of accountants today.
