Cashflow forecasting is extremely important for businesses. Many businesses still prepare cashflow forecasts using spreadsheets, with data being entered manually, spending on average around eight hours per month on this task. This eight hours could be better spent on growing the business and gaining more sales, and this is why cashflow management apps such as Float and Futurli are a vital tool for business owners.
Cashflow apps allow information to be passed “seamlessly” from accounting cloud software, which avoids manual inputting of figures, and obviously can save large amounts of time.
Automatic updates of information from cloud accounting packages such as Quickbooks and Xero can help ensure that cashflows are always up to date and business owners can get a clear view of where the business is at any particular moment.
With a much clearer picture of budget vs. actual performance at any given point in the month, problems can be addressed there and then, rather than having to wait until the end of the month for cashflow reports to be prepared manually.
There are scenario-building tools within these apps that allow business owners to visualise the cash impact of any future plans, for example, purchasing new equipment, or taking on that new employee. This allows you to see where the cash is going in order to make the correct decision for the business.
Many hundreds of thousands of small businesses, including those we work with, are already realising the benefits of moving to the cloud and away from preparing their accounts on traditional desktop software (or even using spreadsheets!). These benefits include easier and less time-consuming bank reconciliations due to the use of bank feeds, better control of outstanding customers and suppliers, and a big reduction in paperwork due to the facility to scan invoices onto the software.
To support business owners wishing to move onto the cloud, our team offers a full suite of data conversion and training services. We are also able to help those businesses already using Quickbooks or Xero to take the next step, with an integrated cashflow forecasting app such as Float or Futurli.
In summary, a cashflow forecasting tool will reduce preparation time, ensure less chance of manual inputting errors, and help give an up to date picture of the company’s finances at any given point.