Cashflow Forecasting…. Make it Rain

"It is normal for cashflow to fluctuate, and for cashflow forecasts to be updated as commodity trade and processes change"

"Cashflow forecasting is about the “Cash in the Bank""

    Cashflow Forecasting… Make it Rain.

    Cash is king. However, there are times when cashflow can be affected by external influences. With the current commodity downturn (particular in the livestock industry), the team at SproutAg have been fielding a number of calls from clients wanting to discuss their cashflow and how best to structure it.

    It’s important to keep cashflow at the forefront of your mind, and to consistently update your plans, particularly during times when your cashflow might be affected. It is normal for cashflow to fluctuate, and for cashflow forecasts to be updated as commodity trade and processes change.

    With cashflow fluctuating across all industries, we encourage you to start reviewing your cashflow forecasts early. On top of this, we’ve noticed that processing times by banks has slowed down, and so we encourage you to keep ahead of the game by staying on top of your cashflow!

    What do I need to Remember when Forecasting my Cashflow?

    1. Cashflow forecasting is about the “Cash in the Bank” and the availability of cash being cash and/or lines of credit/ loans.
    2. A cashflow forecast needs to be revisited on a regular basis, so it’s important that you have a rolling forecast in your business.
    3. Cashflow is about forecasting cash, not accounting and tax net profits.
    4. Starting your cashflow forecasting early is crucial to success. Start by looking towards the end of the next calendar year and the availability of cash/ lending limits that will be required.

    Get some independent help with your cashflow forecast and call your SproutAg Advisor.

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