Cash Flow / Projections.
Cash flows and projections are becoming more and more part of business life. It seems that none of us can turn to anyone else for help without an immediate request for a cash flow forecast or a business projection (especially from banks).
A cash flow forecast looks at how your cash and/or bank balance will rise and fall over a period (usually 6 or 12 months) and is typically required by a bank when, for instance, you request an overdraft facility from them. Cash flow forecasts are also especially useful at the birth of a new business as they help to forecast the provisions you need to make during the period your business takes form.
Projections are required in many different areas, notably again by banks should you require an overdraft or loan facility where your business has not been trading for a sustained period of, usually two or three years. Projections can be very realistic if prepared correctly and are of enormous value to third parties (such as your bank manager) and often yourself.
We take every care to ensure that all cash flow forecasts and projections are as accurate as possible – after all, a piece of string is no good to you unless you know how long it is ?