Using Cash Flow Forecasting to Avoid Problems & Grow Your Business
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.
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