Cashflow Forecasts

Cash flow forecasts are important as they help you estimate the amount of money moving in and out of your business and include projected income and expenses. Cash flow forecasts normally cover periods of between 12 months and up to one month.

A cash flow forecast estimates inflows and outflows to the bank balance during a given period and the result is a forecast of the bank balance at the end of the period. This can then be used to:

  • Predict possible shortfalls in the cash balance and suggest strategies to manage these
  • Check that trading performance (revenue, costs and profits) are turned into cash
  • Ensure that the business is performing against its business plan (which should include a cash flow budget)

The B20 Wessex cash flow service can help you manage your finances better by identifying potential issues and how to resolve them.