We are not your average small business accountants that tell you what just happened with your numbers! By working closely with you to build a specifically tailored cash flow forecast, we can take into account seasonality and other issues that affect your business.
This means we will be able to provide you with a working document to help you attain profit targets and manage cash effectively.
Once this has been done, we can also offer you solutions to free up your cash flow moving forward.
We will also be able to predict where your business may require cash injections well in advance so that you can arrange your finances accordingly rather than have your business and profits stalling while you source the required funds.
One of the biggest problems for business is managing its cash flow. It is in fact possible to go broke making a profit. This is why we recommend the use of three way budget.
Two well known maxims remind us that "what gets monitored gets managed" and that "in business we need to work smarter, not harder".
A forecast profit and loss account plan is as important for a business as preparing a flight plan is for a pilot!
Firstly the preparation of the forecasted budget and secondly (and very importantly) having a system to ensure that action is taken when the actual results differ significantly from those predicted.
A budget should never be just a profit and loss prediction without any real thought for growth, strategy and business improvement.
We are great believers in 3 Way Budgets which not only provide a target for profitability, but also budgets for the balance sheet and most importantly cash flow.
All three budgets should be formulated and used to emulate your business direction and have strategies behind them to reach your desired goals.
We can meet with you on a monthly or quarterly basis to act as an independent sounding board which means we can help you interpret any differences arising from comparing actual and forecast results and make recommendations for keeping your business on track.