Help during the financial year >
Cash Forecasting and Control
It is tempting as a small business owner not to bother trying to forecast income. But once you see your projected income and costs in a spreadsheet, you'll know exactly how much you need to make every month to keep going, and how much you'll have left over for other things, like your salary! It will be far less tempting to spend money on things that are not part of your business plan. That's what a budget is really for — to make sure that your costs are not higher than your income, so you can keep your company afloat.
Cash flow management is one of the most important tasks every business owner must understand. Many businesses have had to close because they weren't managing and controlling their cash. A cash forecast is simply a tool that a businesses use to work out how much and when is money expected to come in, and how much and when is it expected to go out?
This way, you will be able to see if and where you are likely to run short of cash, or if you will have a surplus of cash, you can plan what to do with it, i.e. to temporarily reduce a interest-bearing loan.