Cash Flow Projection Services

Do you know that out of all failed businesses 80% to 90% businesses fail because of poor cashflow management? 

Managing Cash Flow

Managing cash flow is one of the most fundamental and crucial financial disciplines in business management.

Did you know that 80% to 90% of failed businesses cite poor cash flow management as the cause? Many businesses operate without a cash flow projection. As Business Advisors, we recommend that every business get into the habit of preparing a “Cash Flow Projection,” which will be helpful to detect and avoid future cash shortages.

It is true that preparing cash flow projections requires advice and support from a professional. At the very least, every business owner should learn to read and understand cash flow to manage business viability.

A Cash Flow statement summarises all the income and expenses of a business in numbers over a period of time. You need to understand the “impact” of a delay in income on the entire business. This involves estimates and assumptions for future income and expenses. Generally, a minimum of 12 months’ cash flow should be prepared, and it should be a “live” document that is updated regularly. This will allow you to see the fluctuation of the end “balance” per day, week, or month.

Important points to remember:

Cash flow projection should be accurate

Past information are factual and future data are estimated

Data should be updated regularly

Understand the “impact” of change in data to “closing balance”

Seek professional help if you are unsure

These factors will definitely affect your “closing balance” of your cash flow:

Accurate Opening balances

Realistic assumption

Knowledge of forecasting

At Sterling Finance, we advise the business owners and leaders in creating tailored made “Cash Flow Forecast” suitable to their conditions and business structure.