Predicting your cash-flow – why it’s important
Cash-flow forecasting is important because if a business runs out of cash and is not able to obtain new finance, it will become insolvent. Cash flow is the life-blood of all businesses — particularly start-ups and small enterprises.
A cash-flow forecast works like a budget. Except it deals with the flow of cash through the business, both in and outs.
Regularly checking a cash-flow forecast gives you the ability to know today what tomorrow, next week, next month or in six months’ time, your bank account will look like.
Knowing you’ll have enough funds in your account to pay wages, suppliers and yourself creates stability and reduces stress.
The Lumos Business Solutions team are highly experienced in creating and managing cash-flow. We know the difference having accurate information can make to the performance of a business.
Contact us today to organise a no-obligation quote.