Cash Flow Forecasts in Five Steps

Cash flow forecasting is the Achilles heel of many businesses, particularly in the SME sector. Elizabeth Mawby, a client director at Vantage Performance, has seen many companies outlining cash flows for only a week ahead. She says, to be of any use, companies need to be looking 13 weeks ahead. Putting a cash flow forecast together is straightforward. In this edition of the Vantage Performance podcast she takes Phil Dobbie through her five step process, which looks at: Assumptions Sales income Other cash inflows Expenses Building the spreadsheet. . Even if you produce a cash flow forecast regularly, it’s worth 10 minutes listening to Elizabeth’s suggestions, in case you’re missing out a vital ingredient. After all, an inaccurate forecast is next to useless. Listen to the Podcast – Related blogs: How Do I Create A Cash Flow Forecast? Focus on Cash Flow: Optimising Debt Collection Focus on Cash Flow (Part 2): Optimising Supplier Management