Maintaining a balanced cash flow is as important for individuals as it is for larger businesses. Having a professional Chartered Accountant who understands your needs will help immensely.
Budgets are essential “milestones” to help business owners reach their business and/or financial objectives. Budgets need to be flexible and practical.
A poorly constructed budget will turn out to be financially disastrous where costs keep on increasing and revenues do not.
Cash Flow Projections
This is an important aspect for any business. Whether it is a 3-month projection or a 10-year plan, it’s important to Do It Right the First Time.
Having a professional Chartered Accountant that understands your business and has the required knowledge and expertise will ensure your projections are as accurate as possible, and assist you in capitalising on future business growth opportunities.
Cash flow projections need to be conservative yet realistic to demonstrate to the potential financial institution that you have some idea of your business’s viability and liquidity for the present and future. Past results are historical (and in some cases hysterical!) and are only a guide. They do not necessarily guarantee future performance and the ability to service a loan or overdraft.