Have you ever said:
I don’t know if I can pay the wages next week
My suppliers are chasing me, but I can’t pay my bills on time
It’s time to pay the BAS and I don’t have the money
We’d like to buy a new machine – can we afford lease payments?
I’d like to launch a new product/service – will I run out of cash before I get it to market?
If you have said one (or more of these) then cashflow forecasting could help you get a handle on what is coming next, so you don’t get a nasty surprise.
You need a view of:
wages +
payables (the invoices your suppliers send you) +
liabilities (GST/PAYGW, staff super, loans) +
revenue (noting when you’ll actually receive the money $$)
And then you need to keep it up to date!
To start with, you could use excel, but you’ll have to manually update everything.
Or you can connect an app to your xero file that will update automatically every time an invoice or bill is added. We love to connect Float to Xero to make life easier for our clients.
If you think now might be a good time to take a closer look at your cashflow – lets get together before you get caught short.
