Financial Projections & Cash Flow

It is important to prepare regular financial projections and cash flow forecasts as these provide useful information as to the expected financial position of your business. In most cases, banks and funding bodies will request financial projections when businesses are applying for finance.

A cash flow projection shows how cash is expected to flow in and out of the business and how much capital investment your business requires.  Cash flow projections can also assist in the running of your business as cash flow management is a critical tool. For any business, cash is ALWAYS the most important factor. For a lot of businesses that have failed, they didn’t fail because they were not profitable, but because they couldn’t manage their cash flow.

“Turnover is Vanity, Profit is Sanity, but Cash is King!”

 As well as being invaluable planning tools, financial projections and cash flow forecasts often prove essential for start-up business to obtain finance – and for existing companies to secure additional finance for growth.

Another key benefit of preparing projections is that these act as your targets for the coming year. You can compare your actual performance to you budgeted performance and measure any variances.

Abac Chartered Accountants can assist you with the preparation of your cash flow projections, budgeting and financials projections as and when required.