We have all heard of the saying that cash is king and when it comes to business, it really is. What about the saying “if you fail to prepare, prepare to fail”? This is also true when it comes to business.
It’s common to worry about your finances as a business owner. You might have figures going around and around in your head. What is a concern is that many business owners choose not to take control of their future, so why do the same?
When you take this approach, failure lurks on the horizon, waiting to make you pay for your lack of forward-thinking. Don’t let this happen.
In fact, you don’t have to let this happen because you can use a template for cash flow forecasting.
What is a Template for Cash Flow Forecast?
Essentially, this will enable you to see how much money comes into your business and how much goes out. That’s what it is in its simplest form.
This might leave you wondering where you need to begin but it’s not that difficult. Through the use of cash flow templates, you can add more value than you realise. This is because you can project how your business will perform over a set period. It provides insight into your expenses and likely revenue, giving you the scope to plan ahead.
What makes it so Important?
A cash flow forecast is essential for many reasons. As you already know, owning a business doesn’t involve sitting still. It’s a constant ebb and flow of money that underpins where your business can go. You can measure success by the value of your business while this will also underpin its future.
Business comes with many challenges. Some you can predict, others can creep up on. With cash flow forecasting, you can plan ahead. So, you might notice that in Q4, your revenue is going to be restricted. You can then make the necessary changes that enable you to deal with this and reduce the impact. It could involve a sales drive, holding back on extension plans or cutting overheads. However you look at it, you can prepare which is always a positive in business.
What does a Cash Flow Forecast Template consist of?
Creating a cash flow forecast template will need three areas. These are sales forecast, profit and loss forecast and a cash flow forecast.
Everyone loves to see what they are going to sell in business. It’s the cash wheel that keeps turning that makes business owners happy. Therefore, this will predict how much you expect to sell over a given period.
Profit and Loss Forecast
This will contain your daily running costs as well as your income. The two will combine to provide either a negative or positive forecast.
Cash Flow Forecast
This will provide an overview of what comes in and what goes out. You should hope to see more coming in than going out as that will indicate that your business is heading in the right direction!
Cash flow forecast templates play their part when running your business. Don’t let chance take over and let me help you to take your business in a new direction. It’s easier than you might think!
Cash flow forecasting is an important step for all businesses, no matter how big or small If you’re ready to take control of your business finances, sign up for our Cloud solution today – we offer a free trial so you can try before you buy. And if you have any questions, don’t hesitate to get in touch – we’re always happy to help.
Sign up for your FREE trial to Numbers Knowhow, the revolutionary cashflow software designed to empower you with the numbers you need to transform your business. With Numbers Knowhow, you’ll have access to powerful tools and features that will unlock a world of financial understanding and growth.