CASH FLOW PROJECTION

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

Cash Flow Projection Services

Managing cash flow is one of the most basic and important financial discipline of managing business.

Do you know that out of all failed businesses 80% to 90% of them fail because of poor cashflow management?  Many businesses are run without cash flow projection.  As a Business Advisors we recommend that every business get into a habit of preparing “Cash Flow Projection” which will be helpful to detect and avoid future cash shortage.

It is true that preparing cash flow needs advice and support from a professional. At least, every business owner should learn to read and understand Cash Flow to manage business viability.

Cash Flow is a statement of all 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 the estimate 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 which should be updated regularly.  This will allow to see the fluctuation of the end “balance” per day/week/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.