Cashflows forecasting is important because if your business runs out of cash it won’t be able to operate. You now have one clear month before the third quarter to get the best possible clarity around cashflow. Get a clear cashflow picture before third quarter.
How often you forecast cashflow depends on the soundness of your business, although you really cannot do it too much. If your business is struggling, you should be forecasting and revising your cashflow every day.
Focus on cashflows now to:
- Identify potential shortfalls in cash balances in advance — like an “early warning system”
- Make sure your business can afford to pay suppliers and employees
- Spot problems with customer payments
- Have current information for stakeholders like banks.
If you would like to have a chat about your business cashflows, let us know.