{"id":1881,"date":"2019-08-08T00:26:56","date_gmt":"2019-08-07T14:26:56","guid":{"rendered":"https:\/\/saige.com.au\/?p=1881"},"modified":"2019-11-08T11:52:30","modified_gmt":"2019-11-08T00:52:30","slug":"why-forecasting-cash-flow-is-good-for-business","status":"publish","type":"post","link":"https:\/\/saige.com.au\/business\/accounting\/why-forecasting-cash-flow-is-good-for-business\/","title":{"rendered":"Why Forecasting Cash Flow is Good for Business"},"content":{"rendered":"\t\t
For any business, cash flow is what often causes a business to succeed or fail. Having enough money on hand each month to pay staff, suppliers and the bank manager is vital to avoid spiralling out of control. No matter what chaos is going on around you, having a sharp focus on cash flow will mean you remain in business for the long-term.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t \u201cLooking at profit rather than cash flow is like driving a car and looking the speedometer without ever glancing at the fuel gauge.\u201d\u00a0 You may have heard before that keeping an eye on cash flow is important but may have forgotten why. So first, a quick refresher on what can happen to business if you turn a blind eye to cashflow:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t When it comes to cash flow management, preventing cash issues is far easier than trying to solve these issues after the event. Positive cash flow comes from balancing your income (the cash inflows) against your expenditure (the cash outflows). If you\u2019re in control of this then the business will always have the cash on hand needed to cover your list of liabilities.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t Forecasting cash flow works by taking your cash data from your most recent reporting periods and using this to project, or indeed predict, what the future situation is likely to be. Once cash flow forecasting becomes a habit, it becomes easier and soon second nature. Very soon you won\u2019t be able to do business without it.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t By running regular and detailed cash flow forecasts, it is possible to do a number of things:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t With cash flow, there is nowhere to hide. Figures can\u2019t be fiddled to make things look more impressive than they really are and it is the best reality check you will get on your business. Keep on top of cash flow and you keep on top of your business.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t If you want to get a grip on cash flow, we\u2019ll help your tailor your accounting set-up<\/a> and will provide the cash flow forecasting tools you need to reveal your future cash position giving you more and more control of your business\u2019 destiny.<\/p> Saige is a leading Accounting and Financial Planning business located on the Central Coast. We help businesses of all sizes and individuals at all stages of their life to achieve their financial goals.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
– Michael Dell, CEO, DELL Technologies<\/span><\/p><\/blockquote>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\tWhy is managing cash flow so important?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Preventing cash flow problems<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
How Forecasting Cash Flow Works<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Benefits of Cash Flow Forecasting
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How we can help<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t