No one likes spreadsheets. Keeping your cashflow & budget forecasting and reporting up to date can be a challenge. Here at Oyster Hub we use Cloud Based Accounting Platforms that can track your business cashflow, predict your cash inflows and outflows in real time. No need to wait days to visit an accountant.
Real time Cashflow & Budget forecast is essential for your business to stay ahead and improving your cash flow not only makes it easier to plan and budget for future growth, but it also gives you the money you need to handle day-to-day business fluctuations.
Key reasons why a cash flow forecast is so important:
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FAQ - Cashflow & Budget
Cash flow forecasting is an important business process that can create huge opportunities if done correctly but can cause a lot of distress for your business if ignored. Budgeting and forecasting your cash will help you visualise cash surpluses and shortages against your plan and help you determine the pathway to follow as you head into the future.
Cash Flow Forecasting is constantly changing and keeping up to date with it manually can cause significant headaches. This leads to neglect and unproductive work coming into existence. However via automation we have been able to minimise this problem for you.
The Statement of Cash Flows can help you understand:
- Are you in cash surplus or deficit?
- Did your cash levels drop because you were investing too much or because you were spending too much?
- Did any loans you had improve your periodic cash flow or prove detrimental??
Your business generates cash in many different ways. The Statement of Cash Flows breaks it down into three main sections:
- Cash Flows from Operating Activities shows what cash has come in and gone out as a result of the main business activities, (such as receipts from customers, payments to suppliers, wages paid to employees and so on.)
- Cash Flows from Investing Activities includes things such as payments for new assets like office equipment or a new company vehicle. It also includes receipts from the sale of assets, and any investments made.
- Cash Flows from Financing Activities shows any loan repayments, proceeds from new loans, or money invested into the business or taken out by the owners.