Services

Annual 3-Way Cash Flow Forecasting

Cash is the lifeblood of any business; even a profitable business can fail because of poor cash flow.

Drive your business growth with accurate and insightful Annual 3-Way Cash Flow Forecasting.

Every business should undertake an annual forecast to aid their planning and decision-making. We want you to be proactive in financial reporting, analysing performance and managing your cash flow – not assuming you only need one if the bank asks for it.

Accurate cash flow projections let you know how much money will be coming in and out of your business. This will allow you to confidently plan and execute desired growth and improvement strategies to achieve positive change.

This service includes the preparation of a 3-way Cash Flow Forecast for a period of up to 3 years and a review meeting to finalise the cash flow report and identify opportunities for improvement.

Our 3-way Forecasts are a projection of your complete financial statements, showing your profit, tax, cash flows and Balance Sheet to provide a benchmark against which to compare actual performance.

Some of the key benefits of preparing an annual 3-Way Cash Flow Projection include:

  • Providing an understanding of your performance for better decision-making
  • Enables you to predict and plan for large cash outflows
  • Identifies key drivers of performance in your business
  • Allows you to monitor your actual performance against projections in your accounting or reporting software
  • Provides peace of mind that your cashflow needs are known and properly funded
  • Improves communication and relationships with your financiers and suppliers

We’ll draft your Forecast using the information from your accounting software. We’ll then send you the draft to review, along with some questions to make sure our assumptions are correct and to find out if we need to adjust the Forecast for any changes you’re aware of over the cash flow projection period. 

We will then meet with you to review the draft Forecast and discuss seasonal fluctuations, material changes to last year’s results, any implications of staffing changes, significant one-off items, tax payments and timing, and capital expenditure. Following this meeting, we’ll finalise your cash flow report in your accounting or reporting software. 

We recommend you create actual vs. forecast reports each month to track your progress and clarify areas that may present improvement opportunities. We can also help you with this. 

If you don’t prepare a Forecast annually, this is something you should prioritise as soon as possible. The sooner you understand your performance (including cash flow), the sooner you’ll be able to make better-informed decisions and implement strategies to improve.

Call us now on (08) 9780 7555 to further discuss our Annual 3-Way Cash Flow Forecast service.