Working Capital Requirements
We all understand the importance of a good budget but how often do we get it right in estimating a modest figure as either an overestimation or underestimation can easily distort any dependent analysis.
Getting it right though has its rewards, as:
- An annual budget helps in goal-setting, it sets the business on track towards its long term goal
- It is a roadmap to achieve your goals, it must be measurable and actual results benchmarked against targets
- Without a budget the business will lose focus and motivation to achieve any objective
Why would I need to forecast my Cash Flow?
In a business where working capital is sparse, you would need to accurately predict based on scenarios your future cash surplus or shortage by accounting for non-standard business income/expenditure like tax planning, equipment purchase or hire and meeting other commitments.
We can help you in the following areas
- Forecast your estimates based on actual's and not trends
- Stock Control: Holding too much inventory?
- Plan PPE purchases and expansion
- Schedule monthly / periodic expenses & taxes
- Revenue / Expenses analysis to determine key drivers
- Tweak your fixed & variable Costs
- Realistic forecasting reports for cash flow & expenses
- Debtor and Creditor management
- Financing for short term or long term cash flow
- Optional Activity Based Costing
- Tracking budget performance