Look ahead to improve cash flow
Cash flow forecasting can give you and your clients an actionable, easy-to-understand picture of what’s going on in their business. These projections of money in and out are crucial for your clients to understand how their cash flow impacts their business’ performance, financial health and ability to reach their goals.
Two kinds of cash flow forecasting
Short term
Typically the day-by-day, week-by-week forecast using what you currently know about money due to come in, money due to go out and what's in your bank. These are great for supporting businesses that have immediate uncertainty over their cash flow.
Long term
The indirect method of cash flow forecasting uses the profit and loss statement and balance sheet as a basis for forecasting. Longer term forecasts can incorporate such things as economic peaks and troughs, inflation and politics. Typically for businesses who require longer planning and budgeting cycles with more complexity.
Hear from the experts
In this blog post, Lauren Harvey, founder of Full Stop Accounts, talks about how her firm uses Float to give her clients more control and more opportunity in their plans, full stop.
“It’s now more real-time. In the past, cash flow was something that you got to once a quarter; once a month, if you were lucky. The beauty of using cash flow apps that are dynamic is that they enable real-time, on-demand conversation."
– Lauren Harvey, Full Stop Accounts
Recommended apps
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Discover more reporting and forecasting apps.
Show your clients you know cash flow
Learn about cash flow then get the badge to show your clients you know your stuff. Don't forget to read the playbook to discover the right mix of apps that can get your clients' cash flowing.
