Maintaining a positive cashflow is crucial for any business to thrive. However, external factors can put immense pressure on your cashflow, and it is essential to plan for the future to ensure its stability.

Cashflow forecasting has become an increasingly vital tool for finance teams. By gaining insights into your future cashflow position, you can make informed decisions about your finances and keep your cashflow in check throughout the year.

But how does cashflow forecasting work, and how does it help you maintain a positive cashflow position?

In essence, cashflow forecasting involves balancing your income (cash inflows) against your expenditure (cash outflows). If your cash inflows exceed your cash outflows, you are said to have a positive cashflow position. This means that you have some cash left after paying your bills and other expenses, which can be reinvested into the business.

To forecast your future cashflow position, apps such as Float, Fathom, and Futrli use your historical cash data to project your cash position forward in time. This allows you to anticipate any cashflow holes, seasonal dips, or months of high expenditure before they become problematic.

By running detailed cashflow forecasts, you can:

• Understand your future operational cashflow and identify potential cashflow issues before they arise.

• Plan your costs and expenses effectively, allowing you to stick to your budget and manage your costs.

• Avoid cashflow issues altogether by using your forecasts to plan ahead and gain better control over your cashflow management.

In the current economic situation, maintaining a positive cashflow position can be challenging. With fluctuating supplier prices, unpredictable revenues, and operational costs, it can be challenging to balance your inflows against your outflows.

At our firm, we can help you set up detailed cashflow forecasts that provide you with a better understanding of your financial situation. This will put you back in full control of your cashflow and enable you to stay ahead of any potential cashflow issues.