Cash flow forecasting
10 Jun 2013
Cash flow is king when it comes to running a successful, small business.
Written by
The Big Idea Editor
Cash flow is king when it comes to running a successful, small business. Unexpected costs and dips in sales happen to 99% of small businesses in New Zealand, and when they do their owners rely on the actual cash they have access to rather than funds tied up in capital assets or outstanding debts to see them through.
However, being able to predict these peaks and troughs doesn’t just allow you to identify cash shortfalls and plan ahead. You can, for example, use your cash flow forecasts to time significant expansions and special projects, and maintain steady growth to avoid the risks of overstretching your resources.
Source: Ministry of Business and Employment
FURTHER READING:
On cash flow and budgeting in Generator
