Cash Flow Isn’t About Numbers…

Cash flow forecasting is not about numbers. I mean, sure, you need numbers to make a cash flow forecast. But that is not what cash flow forecasting is about.

Cash flow forecasting is actually about using numbers to make decisions that will help you achieve business success and avoid failure.

Imagine You Couldn’t Pay Your Staff

If you knew that at the end of next month you wouldn’t have enough cash to pay all your staff…what would you do?

Ask a customer to pay early? Ask a supplier if you can pay late? Drum up some more business? Take out a loan? Let someone go?

You’d probably do something, right? Because if you’re standing in the middle of the road and you can see an 18-wheeler headed right for you…you’re probably going to step out of the road, aren’t you.

Now Think of This

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Same situation (you don’t have enough cash to pay all your staff at the end of next month) but you don’t know that…what do you do?

What can you do? You’re flying blind. Maybe an invoice will be paid early. Maybe a staff member will quit.

Maybe you’ll luck out.

Or maybe you won’t.

That’s why business owners should do a cash flow forecast. To take luck out of the equation.

And that’s why cash flow forecasting isn’t strictly about the numbers. It’s about knowing where your business stands today and knowing where it will likely be tomorrow.

Cash Flow Forecasting Made Easy

At Float we believe that cash flow forecasting is a critical function for every business. But we also believe that it shouldn’t require loads of time or expertise to do properly.

 

Ewan McCowen

I'm a marketing professional and Babson alum who loves all things business. When not in the office you might find me somewhere in the Scottish Highlands, fishing or wild camping.