What is a cashflow statement?
Posted on 28th Jan 2022
Do you really know what a cashflow statement is?
Now that we’re into another year, surely you owe it to yourself to review your plans so you make this year as profitable as possible and better than last year!
It’s really important that you know what your turnover needs to be, to deliver on your profit targets. So you get to live the life you want and deserve for all your hard work running your business. What better way than ensuring you plan your cashflow and then monitor actuals against it!
Equally, if not more important is forecasting your cashflow so you know in advance if there are any issues and can put in place measures to combat.
Once you have planned it all out, you need to monitor the actuals against these forecasts.
In this week’s video David explains more about your cashflow statement.
In this video David goes through what a cashflow is and why it’s so important for you and your business.
Cashflow forecasting is so important for any growing business. It’s a well known fact that many successful businesses fail due to overtrading as they grow and running out of cash.
Therefore it is imperative that you can plan when you need to obtain additional funds to support your growth. It’s always easier to obtain in advance rather than to do when under duress!
It’s really important, once you have your forecast you compare your actuals against it. This gives you an early alert if something is not quite right and you need to take “corrective action”.
One of the services we offer at Krystal Clear Accounting, is producing cashflow forecasts. We also offer Profit & Loss forecasts, budgets and full business models that show what is possible!
If you’d like help with Forecasting and increasing your profits then drop us an email at wecare@krystal-clear.co.uk or give us a call on 0161 410 0020.
After all, “Not all accountants are the same!”