Cash Flow Forecasting

Cash is the live-blood of any business and the drying up of cash flow can result in your business having to close. This is one reason why cash flow forecasting is so important if any business has to remain solvent. It is also why it is so necessary to continuously monitor the in-flows and out-flows. A positive flow will mean more cash in the bank, less cost of borrowings and a higher debt clearance option. All this will go a long way in keeping the business on even keel and dealing with high and low seasons without any problems.

JAG Team Professional Bookkeepers will guide you in monitoring and tracking cash flow to ensure that you never face a serious cash crunch and have a lot of margin for business expansion and product diversification.Our methods include –

  • Charting out customer payments or inflows and identifying defaulters. However, this is not crucial for retailers who deal mainly in cash or credit cards at point of sale.
  • Tracking cash flow and making sure that there is always enough cash for supplier payments or outflows as on stipulated dates.

By analysing the two, we are able to determine cash flow forecasting that will help any business avoid the pitfalls of a low cash balance. This is especially true for start-ups and small businesses where low cash balances can have disastrous consequences. We use specific software and tools so that the cash flow projections are always precise and accurate.