Projecting your cashflow pipeline forwards is vital
To navigate the future path of your cashflow, you need to start forecasting. This allows you to map out your financial position over the coming months and take appropriate action to safeguard your cash position. Coastal Accounting Limited specialises in providing comprehensive cashflow forecasting services to help you achieve this.
With detailed forecasts, you can scenario-plan, search for cost-savings, and develop strategies to preserve your cashflow position. Were here to support you every step of the way.
Forecasting your future cash pipeline
Remaining in control of the cash coming into (and going out of) the business is crucial. Accurate predictions of your financial position enable you to resolve any issues promptly. Let’s dive in to some smart strategies to improve your forecasting accuracy:
- Run regular forecasts – The financial landscape is changing daily. A cashflow forecast is not static. Variables and external drivers change each day, so it’s vital to run frequent forecasts and react swiftly to any projected cash issues as they become apparent. We can help you set up and maintain these regular forecasts.
- Explore the right revenue streams – Most sectors have seen their sales change over the last 18 months. To overcome this, explore new revenue streams and opportunities for income. This could involve offering a new product or service or working with a new partner. The goal is to increase the money coming in and balance out unavoidable expenses.
- Get proactive with cost-cutting – Reducing cash outflows to a minimum will significantly impact the health of your future cashflow. Pare back operations and aim to reduce unnecessary software subscriptions or over-ordering of basic supplies. Negotiating cheaper rates with suppliers, if possible, will also help. We can provide expert advice on effective cost-cutting measures.
- Review your staffing needs – While making redundancies is never ideal, consider ways to reduce staffing and resourcing costs without letting staff go completely. Reducing working hours or redeploying staff in different roles are options that reduce payroll costs while looking after your team.
- Run a variety of scenarios – Changing the financial drivers in your forecast model allows you to scenario-plan different strategies and options. Many of these will be part of a long-term plan once conditions improve. Scenario-planning lets you answer questions and provides hard evidence to base your decision-making and strategic outlook over the coming months. Coastal Accounting Limited offers robust scenario-planning services to support your strategic decisions.
- Look at various ways to access funding – If forecasts show a significant cashflow gap, you’ll need additional funding to get through this crisis. We are happy to assist your business in investigating funding opportunities and securing the necessary financial support.
Forecasting is an important step to provide the business intelligence needed to support your decision-making. We are passionate about these services and dedicated to helping you improve your cashflow management to ensure your business’s financial health.
Get in touch with us today to book!