Five signs your company needs a cash forecast
Paper profit doesn't pay salaries. Here is when a cash forecast becomes essential.
Many profitable companies stumble because cash doesn't arrive on time. A weekly cash forecast answers one simple question: will we have enough to meet our obligations over the next thirteen weeks?
The signs
- Suppliers are repeatedly paid late.
- You rely on the overdraft at the end of every month.
- Sales grow while receivables grow faster.
- Quarterly and annual costs keep coming as a surprise.
- Questions from the bank are hard to answer.
If you recognise two or more, start with a simple sheet updated every week.