The value of cashflow forecasting for your business

Strong cashflow is the backbone of every successful business. Yet many businesses lack a clear view of their cash position in the months ahead.

Cashflow forecasting changes that. By projecting your inflows and outflows, you can identify issues early, plan with confidence, and make informed decisions to protect and grow your business.

Why forecasting matters

Forecasting gives you visibility. It helps you understand how much cash is coming in and going out, when pinch points are likely to occur, and what action you can take to avoid shortfalls.

With accurate forecasts, you can scenario-plan, uncover cost savings, and find strategies to strengthen your financial position.

How to get more from your forecasting

1. Run regular forecasts
   Your forecast shouldn’t be a one-off document. Market conditions, costs, and demand change quickly, so your cashflow forecast should too. Regular reviews enable you to respond promptly to potential issues before they impact your bottom line.

2. Use smart forecasting tools
   Cloud-based tools such as Float, Fathom, Futrli Predict, and Fluidly integrate with your accounting software to give real-time visibility over your cash position. They make forecasting faster, more accurate, and easier to maintain.

3. Review revenue streams
   Evaluate whether your current income mix remains suitable for your business. Are there new opportunities, services, or partnerships that could diversify your revenue and improve your cash position?

4. Get proactive with cost control
   Small changes can have a big impact. Review subscriptions, supplier rates, and purchasing habits to find efficiencies and free up working capital.

5. Reassess staffing and resourcing
   Labour costs are a significant expense. Explore options such as reduced hours, redeployment, or flexible resourcing to balance capacity and cost without losing valuable team members.

6. Plan for multiple scenarios
   Testing different “what if” scenarios helps you make confident decisions, even in uncertain times. Adjusting assumptions within your forecast can highlight how changes in sales, expenses, or funding will affect your position.

7. Consider funding options early
   If you can see a gap coming, plan ahead. Grants, bank loans, or alternative funding may be needed to smooth cashflow or support growth. Kendons can help you assess the best options for your situation.

Take control of your cashflow

Forecasting provides you with the clarity and confidence to make informed, better business decisions.

If you want greater visibility over your cash position and future plans, talk to us. We’ll help you set up effective cashflow forecasting and guide you through what the numbers mean for your business.