Cashflow Projections


Business owners focused on doing ‘the work’ often take their eye off the lifeblood of the business; cash flow.

Without cash flow, businesses struggle to pay debts and ultimately pay you, the owner.

Here at FWO Chartered Accountants we implement a cash flow improvement formula which:

  1. Drive debtors down;
  2. Drive stock holdings down; and
  3. Maintain creditors at term.

So that surplus cash exists to:

  1. Make asset purchases;
  2. Pay debts; and
  3. Pay dividends and drawings to owners.

An essential element of cash flow management is cash flow projections. Cash flow projections help businesses to prepare for potential cash shortages by:

  • Maintaining adequate cash reserves to pay bills, expand the business and make capital improvements;
  • Reduce interests costs through managing borrowing;
  • Increase interest income by shifting funds into higher-interest accounts;
  • Receive discounts through bulk purchasing;
  • Improve relations with the bank.

By preparing a cash flow projection you can also gain better knowledge of your businesses processes.

If you need help with your cash flow management including projections, call us on  07 3833 3999 or email as at [email protected].