In the present economic climate a meeting with the bank manager can often end with the words “Can you please put together a financial forecast for the next twelve months…..and how soon can you deliver it?” Or an expansion plan team may ask the accounting and finance department “how can we finance our new project out of existing cash flow?”
All business owners have a “feel” for their business but not all will have regularly updated financial forecasts. Sign up to Alliotts Outsourcing Service, and we can provide you with regular updated cashflow projections based on rolling forecasts for the next one, two or three years.
We can advise you of the peaks and troughs in your cash flow, monitoring actual results against budgeted performance. We can highlight if and when any banking covenants may be breached so that the business can take fast remedial action. A good year’s results may result in a high corporation tax bill so we can firstly include such payments in the cash flow projection for next year and secondly call in our tax advisory team to see how the tax bill can be minimised.
Any expanding business will have greater demands on cash flow, as more and more cash is tied up in stock and debtors. This is technically called “overtrading” and presents a cash flow management risk to many businesses, especially those that expand quickly after a period of recession. Regular advice and recommendations from our Outsourcing Team will allow you to control the risk as you maximise the returns to your business.
Cash flow management also extends to arranging payment runs for suppliers and credit control services for customer accounts.
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