Accurox

Financial Advice for Construction Companies

Accurox can provide specialised accountants for your construction company. Save time and resources by working with people who know your business.

Cashflow management and how it can benefit your business

Cashflow management and forecasting is simply the most important tool you can use to gauge the health of your business. Enabling you to plan for both sustainable growth and resilience in adversity.

How can Cashflow Forecasting Help Your Business?

Essentially, your business should be generating more cash than it is spending. However, this can be more difficult to accurately analyse than it might seem at first glance.  Accurate cashflow forecasting enables you to make informed decisions about your business.  By analysing your data, we can use what we know about your cashflow patterns, to predict how things will look down the road and use that information to your advantage.

A dynamic cashflow forecast can be used for:

  • Identifying fluctuations in sales and expenses, so you can ensure your business can always meet its obligations.
  • Understanding these patterns that should influence your business decisions.  When is the best time to invest in equipment or new team members? Your cashflow forecast will show you when you are likely to have surplus cash so you can plan growth with confidence
  • Equally, it will show you when you are likely to see a rise in expenses, such as seasonal hiring, or tax seasons, meaning your will be able to plan for these downturns in cashflow
  • Identify changing trends that may also be caused by areas in your business not performing as well as they should be, or erratically.  By recognising these areas of weakness or stress points, you will have the power to take control with constructive changes to your systems and procedures.

Looking for Financing?

Furthermore, there are other reasons your business needs rigorous cashflow management. When looking for financing for your business, an accurate cashflow forecasting report will be one of the first things your provider will ask for.  We can base your forecast on, 3, 6, 12 or even 5 years, whatever best suits your needs.

Cashflow management allows you to consider various scenarios for the future of your business.  We can use it to identify the best times to push for growth. And create plans for unexpected downturns (like Covid-19). However, it’s vital that the data we work with is really accurate and up to date to be reliable.  That’s why we advocate cloud accounting for clients.  We know that accounting software, such as Xero, is the only way to curate persistently accurate and dependable and up to the minute numbers that truly indicate the health of your business, right now.  Numbers you need to make the right decisions for your business.