There is an old saying, Cash is King, and it is so true. Cash flow is as important to any business as air is to us for survival. The importance of robust cash forecasting cannot be overstated.
The timing of cash flows in and out of all business’s ebbs and flows. For example, GST Registered businesses with a March balance date will have just had to pay their 2018 terminal tax, March 2019 GST and third provisional tax payment – all within the space of four weeks! This is a huge hit to cash balances.
Robust forecasting of cash identifies periods where cash is surplus and where there are deficits. With these identified, you can plan accordingly and sleep easy.
If this is something you would like to look at further, get in touch!