Cashflow Forecast


                                                 from £85 + VAT per month OR from £255 + VAT per quarter

What is a cashflow forecast ?

A cashflow forecast is a tool used by businesses to predict future cash flow. It takes into account all incoming and outgoing cash, as well as any expected changes in income or expenditure. It can give a business a clear picture of its financial health and can help to identify any potential problems early on.

Businesses with a healthy cashflow can plan for future growth, while ones that have cashflow problems may struggle to stay afloat. The cashflow forecast, then, is designed to help you assess how much money you have coming in and going out of your business over a certain time period.

Businesses can use their cashflow forecasts to plan for their future needs, such as investing in new machinery or expanding their premises. Regularly updating and reviewing a cashflow forecast can help businesses stay on track and make informed decisions about their finances.

As well as helping you make decisions about what you can afford, you will be able to address any cash flow problems ahead of time.

If you are a business owner spending ANY time worrying about finances then you DO need an accountant. 

Why is a cashflow forecast important ?

Cash mainly comes into your business from what you make through sales, but you might also have a loan, a credit card or a recent tax rebate, too. In terms of the cash going out, this refers to all the money your business spends: rent, taxes, salaries, along with other expenses like marketing, insurance and more.

Let’s say you run a beauty salon business, where you earn the bulk of your money through facial and body treatments. If you have just taken out a loan to buy some new equipment, you will have the amount you are borrowing coming in too. Most of the cash going out will probably be used to pay suppliers of cosmetic products, staff and your own salary, as well as things like taxes, running costs and loan repayments.

So how can a cash flow forecast help your business ? Most of all, the cashflow forecast is a great financial barometer that allows you to see what kind of pressure your business might be under. Plenty of things can cause cash flow problems – from outstanding payments to uncontrolled growth – and forecasting helps you catch those issues early.

When you know what to expect, you can make better decisions. With a cash flow forecast, it is easier to understand whether you can afford to make that next big hire or invest in a new piece of machinery.

Lenders are interested in this information too. Like payslips for a mortgage, a cash flow forecast helps you prove your business’ performance when you are looking to borrow. 

Also, having enough cash to clear tax and VAT liabilities can sometimes become difficult, you should make sure that the accountant you work is not only helping you prepare and submit tax returns, but is also helping you plan for the cash outflow the tax liability brings with it.

What are the benefits of having a cashflow forecast ?

  • It can help you plan for future expenses and ensure that you have the cash on hand to cover them.
  • Help you identify and track trends in your company’s cash flow, so you can make changes to ensure that your business stays healthy.
  • Help your business meet its financial goals by making informed decisions
  • Keep your business financially healthy and secure by identifying the financial needs your business is facing


In essence, utilising an accurate and detailed cash flow forecast will enable business owners to improve their decision making, enhance problem-solving capabilities and strengthen their financial management.

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