Profit and turnover levels are often the two most prominent factors business owners consider. However, the significance of cash should not be underestimated. Increased cashflow scrutiny is often afforded in more challenging times, but can be equally important in supporting future growth plans.

Challenging times

Cashflow problems are typically one of the first signs a business is in distress. However, if business owners can pre-empt any shortages of cash through forecasting they will be in a much stronger position to find a way of resolving the deficiency before it’s too late.

Properly used, cashflow modelling can help business owners pre-empt challenges ahead, provide reassurance and support strategic decision making – all the more important in times of uncertainty.

Growth plans

At the other end of the scale, in prosperous times, cashflow planning is still a crucial step in managing finances and growth.  Unfilled orders, unhappy customers and, ultimately, cashflow problems can all occur when business activity increases without the necessary resources to support it.

During these times it is imperative to anticipate the amount of funding required to support increased trading levels. Furthermore, it garners confidence to funders in any lending decision.

Need advice?

As a commercially-minded, owner-managed business ourselves, we understand the challenges businesses face. Our team of advisers are experienced in helping businesses with their financial reporting and outsourcing needs to help their businesses succeed.

For further information, or to discuss your specific circumstances, please get in touch with our Business Services team on 01788 539000 or 0116 261 0061.


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