You need Budgeting

An essential habit is to set a budget at the start of the year as this will enable you to assess how much cash you need in any given week or month. A budget will highlight times (eg seasonal variations) when cash gets very tight and either careful cash management is needed or you may need to borrow. The important part is that you know in advance when issues will occur so that you can start planning early which will in turn minimise problems later.

You need Forecasting

You will also need to have cash flow forecasts on a weekly or monthly basis. No business, no matter how big or profitable, will stay in business for long if it simply doesn’t have the cash in the bank to pay the bills when they need to be paid.

A business should prepare profit forecasts on a regular basis so that it knows if it is on track. If the forecast shows the business is likely to be going off track then because you know now, corrective action can be taken sooner. Businesses and markets are always evolving and forecasts can be used to highlight these changes and their impacts – the important thing is ensuring your business responds and adapts quickly to ensure that it stays on track.

Get in touch

Read Case Studies

Posted in: Business Issues

Meet For A Coffee

Let's meet
for a coffee

Arrange a time
We'll Call You Back

We'll call you
back

Arrange a time
Kim Marlor's Book

Supercharge
your profits

Download Free Book

Get in touch

0161 410 0020
info@kmaaccountancy.co.uk

KMA Accountancy
Progress House
17 Cecil Road
Hale
Altrincham
Cheshire WA15 9NZ

Latest news

Are you missing out on these legitimate tax savings?

With the end of the tax year looming in the not too distant future, it's time to take the challenge and see if there is any opportunity to be more...

KMA Goldmine TV – Episode 17-Sabotage!

Do you know what is happening in your business when your not around? Find out why your future profits rely on it!
Keep reading...

Tweets @KMAltd