Focus on Cashflow Forecasts
31 July 2023
We provide guidance to clients on the preparation of their cashflow projections for financiers and offer the following tips to assist you.
When financiers assess a company’s financial position, owners are almost always asked for a Cashflow Forecast. We provide guidance to clients on the preparation of their cashflow projections for financiers and offer the following tips to assist you.
- Ensure you are realistic about future hopes and expectations. Check that your final inputs are similar to past actual results.
- Be consistent in the application of operational policy and strategic changes.
- Allow for seasonal peaks and troughs.
- Include taxation, statutory charges, directors’ or partners’ drawings and changes to future interest rates in cashflow projections.
- Check the accuracy of opening cash book balances and proposed loan repayments.
- Make sure that new purchases (capital) and new loans are included.
- Record the key assumptions used in the projections and ensure that they are relatable back to source documentation and/or business operations.
Quadrant advisory are 100% client side and independent of financiers. Our corporate banking experience helps clients and their advisors (Accountants, Lawyers, etc.) talk
to financiers and strengthen relationships.
Contact us for an obligation-free chat about how we can help your financial position.