Running a small business presents plenty of challenges, but there is huge potential for future growth, too. From building up a solid client base to expanding your service or product line, there are many ways to go from success to success.
Of course, underpinning all of this, is good cash-flow forecasting. Having the right business accounting software can be incredibly valuable, while an appreciation of the importance of forecasting can help you stay on top.
What is cash-flow forecasting?
Business New Zealand explains that a cash-flow forecast is a projection of your regular incomings and outgoings.
You might have weekly, monthly as well as annual forecasts. All are important in their own right. For instance, a weekly forecast will help you stay on track to order new stock on a frequent basis, while a monthly forecast is essential if you're going to pay your employees what they're owed.
A yearly forecast will help you look ahead and see potential for growth, whether you're looking to expand in the next three years or five.
You'll include anticipated expenditure during a forecast period as well as accounting for a cash surplus or deficit. In addition to this, it's also important to record the account balance - both for the beginning of the time period in question, and the end of it.
Is there any way to simplify this process?
If you're in charge of a small business in New Zealand, you'll be relieved to know that there is a way to simplify this process, leaving you more time to focus on the big-picture items.
CashManager Software is the answer for individuals who aren't accountants, but need to plug in all the important figures to ensure their business runs smoothly.
There is a range of levels, meaning there's the right kind of software for each and every business. Plus, there are special add-on products, such as an invoicing module, which makes keeping track of supplier invoices as easy as pie.