Using Cash Flow Forecasting to Avoid Problems & Grow Your Business

Kirsch CPA Group

Apr 07, 2021

Every business owner knows the importance of cash flow. It’s what keeps the lights on and keeps things moving forward.

But cash flow is not the same thing as your bank balance today vs. yesterday. With the right accounting partner, cash flow is the key to nimble decision making and opportunities seized. Your bank account won’t tell you that you may be short $100,000 3-6 months from now or that you will have enough to hire new employees.

Genuine cash flow visibility comes from being able to forecast into the future, with projections that let you know whether you will be in a position to hire those key new employees, purchase new equipment, acquire another company, or open new locations.

Cash Flow Visibility through Forecasting

High level cash flow forecasting takes into account more than just income; it accounts for projected revenue growth, changes in cost of revenues, your tax liabilities, and other increases in overhead expenses. It creates a model you can use to make business decisions with confidence, using current data and reliable projections.

A 12-month cash flow projection puts you in the strongest possible position, with the information to make good decisions. When you don’t have a clear picture of where the next 12 months will take you, your business is vulnerable to wherever market forces take you.

Cash flow forecasting can provide the guidance you need to make informed business decisions, take advantage of opportunities, and move confidently in the direction of bigger goals. The right accounting partner will work with you to analyze cash flow data so you can make informed decisions.

A Partner Committed to Your Success

At Kirsch CPA Group, we have deep expertise in providing services that go way beyond tax preparation and preparing financial statements. We help you solve problems and take advantage of opportunities with our forward-thinking advisory services and a practical approach to problem solving.

Our services are designed to position our clients to take advantage of opportunities and bypass obstacles – to move them closer to their goals.

If that sounds like the kind of accounting partner you need, let’s talk.

More Resources

Guide: Next Level Accounting Services for Your Growing Business

Guide: Build a Better Business by the Numbers

Case Study: Strategic Accounting Support from Acquisition to Sale

About The Author

Kirsch CPA Group is a full service CPA and business advisory firm helping businesses and organizations with accounting,…

info@kirschcpa.com

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Frequently Asked Questions

How can I manage cash flow better?

Good cash flow management and forecasting are essential for maintaining the financial health of your business. Having a rolling 12-month forecast of revenues and expenses helps you proactively avoid shortfalls and capitalize on opportunities. Learn more >

How can my business benefit from outsourced CFO services?

Outsourced CFO services, also known as fractional or virtual CFO services, let small and mid-size businesses leverage the deep financial expertise and strategic insights needed to accelerate growth and profitability for a fraction of the cost of hiring a full-time CFO. Key offerings include profitability analysis, cash flow forecasting, KPI benchmarking, and budgeting. Learn more >

How can I ensure that I don’t pay more taxes than necessary?

Effective tax planning involves leveraging all available tax credits, avoiding unpleasant surprises, keeping up with changes in the law, and ensuring you pay only your fair share. Learn more >

How can a CPA firm increase the profitability and value of my business?

When you partner with an accounting firm that offers advisory services, you will have the clear financial visibility needed to confidently make big decisions and drive profitable growth for your business. Learn more >

What should I look for in an outsourced accounting firm?

Growing a business requires more than tax preparation and basic accounting services. You need a holistic and forward-looking approach to your financial health. For best results, look for a partner who employs a proven process and a diverse range of services tailored to optimize cash flow, increase profitability, and maximize the value of your business. Learn more >

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