Hey guys, Nathan here.
As an accountant, I know that business owners should know that managing cash flow is crucial for the survival and success of any business.
Cash flow forecasting is a tool that can help you understand your business’s cash position now and into the future by analysing upcoming income and expenses. Cash flow forecasting can also be a complex process that can sometimes require the expertise of an accountant, like me, when you start setting one up.
In this blog, I will discuss 10 reasons why you should talk to your accountant when setting up a cash flow forecast for your business.
1. Do you have financial goals you want to achieve?
An experienced accountant can help you set financial goals for your business. By analysing your business’s financial performance and market conditions, your accountant can help you set realistic financial targets and create a cash flow forecast that aligns with your business goals.
This can help you plan and allocate resources efficiently and effectively.
2. Have you got an established financial system?
Setting up a financial system is a crucial step for any business. As your accountant, we can help you establish a financial system that suits your business’s needs and goals. This can include setting up an accounting software, creating financial statements, and implementing financial policies and procedures.
For more information, check out our previous post on 10 Reasons Discuss Setting up your Accounting Software with your Accountant.
3. You want to make sure you’re maintaining compliance requirements.
As a business owner, you need to comply with various tax and financial regulations. We can help you stay compliant with these regulations by ensuring that your cash flow forecast is accurate and up-to-date. We can also help you prepare and submit your tax returns and financial statements on time.
4. Do you know what you’re looking for with your cash flow?
We can help you analyse your cash flow and identify areas where you can improve. By understanding your business’s cash inflows and outflows, we can help you pinpoint problem areas and create a plan for solving them. This can help you improve your business’s cash flow and ensure its long-term financial sustainability.
5. Creating a cash flow forecast
We can help you create a cash flow forecast that accurately predicts your business’s future cash inflows and outflows.
This can help you make informed decisions about your business’s financial resources and plan for any potential cash shortfalls or surpluses.
6. Do you need help managing your business debt?
If your business has debts, we can help you manage them effectively. By analysing your cash flow and financial statements, we can help you create a debt management plan that minimises your interest payments and maximises your cash flow.
7. Are you looking at making investment decisions in the future?
We can help you make investment decisions that align with your business goals and cash flow forecast. By analysing your financial statements and market conditions, we can help you identify investment opportunities that maximise your returns and minimise your risks.
8. Are you planning for future growth of the business?
If your business is growing, we can help you plan for this growth by creating a cash flow forecast that considers your projected revenue and expenses. This can help you plan for any necessary investments, such as hiring new staff or expanding your operations.
9. Are you wanting to identifying tax savings?
Your accountant can help you identify tax savings opportunities that can help you reduce your tax liabilities and maximise your cash flow. This can include identifying eligible tax deductions, maximising depreciation deductions, and creating tax-efficient investment strategies.
10. Do you need us to provide financial advice?
Lastly, we can provide you with financial advice based on their expertise and experience. Whether you need advice on managing your cash flow, creating a financial plan, or making investment decisions, we can provide you with valuable insights and guidance.
Cash flow forecasting is an essential tool for any business owner. By talking to the team at NGR Accounting, you can ensure that your cash flow forecast is accurate, up-to-date, and aligned with your business goals. We can provide you with valuable insights and guidance that can help you improve your business’s cash flow and ensure its long-term financial sustainability.
If you have any questions, please feel free to contact NGR Accounting at 02 9011 6669 or via email at info@ngraccounting.com.au
Updated 19th April 2023
JM