‘Cash is king’ is a well-established concept and a commonly used phrase, which is arguably more relevant now than ever before, as businesses experience payment delays, loss of revenue and cash shortfalls. Historically, however, more businesses have failed coming out of a downturn than going into it. The importance of cash flow forecasting cannot be understated; it enables you to identify potential shortfalls at an early stage and to adapt your operations to suit.
Hazlewoods has created two basic financial model cash flow templates, which are available to download free here.
If you need assistance in completing the templates, or require a bespoke model, we would be pleased to help.
Our bespoke, user-friendly financial models (which are built in Microsoft Excel) are tailor made to meet your needs. We work alongside you throughout the process to ensure that you understand the model and related assumptions, enabling you to forecast financial performance and assess strategic options both now and in the future.
Business models differ but, for most, the pinch points will come when business picks up again as working capital will have been eroded and delayed VAT and other payments will fall due. Demands on working capital will be such that careful cash flow planning will be required.
If you require assistance in managing liquidity, or want to understand the impact of your decisions on profits and cash flows before you make them, please contact a member of the team who would be pleased assist you in preparing a financial model, comprising an integrated monthly forecast balance sheet, profit and loss account and cash flow statement.
For more information or to discuss a bespoke cash flow forecast for your business, please get in touch with Paul Fussell at firstname.lastname@example.org or 01242 680000.