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
These apps integrate seamlessly with Xero to cover data capture for tracking, reporting and forecasting.
Discover more reporting and forecasting apps.
Cash flow forecasting apps – video demos
Xero’s app marketplace houses over 800 app partners and here are four key cash flow app demos to give you and your clients a view of how they work.
Fluidly
Fluidly is an intelligent cash flow tool for both businesses and you as their accountant, which manages cash coming in, cash going out and everything in between.
Float
Float is a forecasting and management app that gives a real-time view of cash flow. This enables businesses to plan for the what-ifs and make confident decisions about the future.
Spotlight
Spotlight Reporting offers a suite of cloud-based tools designed to provide accountants with an extensive range of reports, dashboards and forecasts that save significant time.
Futrli
Futrli helps businesses and their accountants understand key financial metrics, manage cash flow and make informed decisions for their businesses future.
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.
