Cash Flow & Budget Analysis for Healthy Business Function
Cash is the gasoline that makes a business run, and even a profitable business can still run into trouble due to cash flow issues. Although profit may be the ultimate goal, it can’t become a small-business owner’s sole focus, because without a successful cash management plan, profit can be meaningless. Cash budgeting, cash flow forecasting and cash account analysis are crucial for preventing a situation in which a small-business owner reports a profit on paper but at the same time is facing bankruptcy.
We can forecast and evaluate your company’s financial condition, estimate financing requirements, and track cash-flow sources and uses. This information is essential to running a healthy, profitable organization that understands cashflow is often just as important as profitability.
Cash Flow Forecasts and Evaluations
Cash flow forecasts aim to predict future financial liquidity over a specific period of time. A new small-business owner or one just getting started with creating cash flow forecasts may want to consider starting with short-term forecasts.
A monthly statement of cash flows is an essential analysis tool. Analysis involves looking for trends and patterns and using this information to prepare meaningful budgets and forecasts as well as make important business decisions. A statement of cash flow classifies cash inflows and cash outflows according to whether they originate from operating, investing or financing activities.
Managing cash flow effectively takes the skill of someone with years of experience. The CPAs at Cayton & Associates have decades of experience at effectively managing cash flow and providing accurate and reliable analysis of budgets and cash flow for organizations throughout eastern North Carolina.