How to Forecast for Cash Flow and Cut Your Costs Using Cloud Technology

You've just opened your own business and you're wondering how to forecast cash flow. You want to make sure that you can plan for the future and stay on top of your finances so that your business doesn't suffer when times get tough. And, it's not just about forecasting - you also need a system in place to ensure that cash is coming in and going out as expected. How are you supposed to keep track of all this information?

A cloud-based accounting software package could be the solution for small businesses like yours.

Your cash flow forecast is a critical business management tool. Cloud accounting gives you the freedom to update your forecast with live numbers as soon as they’re available.

Even if your business is profitable on paper, you need cash flowing into the business faster than it’s flowing out. Forecasting is the best way to safeguard your business financially. It’s usually divided into receipts, outgoings, and a monthly cash balance or cash flow statement (which should equal the amount of cash in your bank account).

The traditional method of business forecasting has been to rely on spreadsheets, Word documents, and even bank statements to put together projections. This is time-consuming and prone to human error even if you are storing documents in a cloud platform like Google Drive. Futrli simplifies cash flow forecasting and budgeting to the cloud. Designed to be straightforward and easy to use, you can be forecasting in just a few minutes.

The cloud means your cash flow forecasting is done in real-time

Cloud cash flow forecasting takes the headache out of future accounting and does all of the work for you (both the hard and the easy). Updating your forecast with real-time figures as soon as they’re available, the forecast becomes your actual cash flow position as you go through the year. The process is all created for you – you’re not starting from scratch with a blank spreadsheet.

The beauty of cloud forecasting is that it also enables business owners to quickly and easily create some what-if scenarios to measure the impact of, for example, a 5% dip in sales or a 10% increase in costs, to help you build some contingency into your figures. It does away with time-consuming spreadsheets and tapping into quick and easy scenario planning for unforeseen or seasonal changes.

The benefits of cloud-based cash forecasting for small businesses

1. Flexibility.

Cloud cash flow forecasting gives you the freedom to run your business from work, home, or on the go. You can be confident that you have an up-to-date picture of how your business is doing, no matter where you are. A lot of business owners start their businesses for the extra added freedom, and small business software using cloud computing can get you at least part of the way there.

2. Automatic updates.

Your data is delivered faster in real-time and more accurately in the cloud. This eliminates the hassle of manual uploads, so you have more time to focus on growing the business.

3. Collaboration.

Multi-user access makes cash flow forecasting online quick and easy using team collaboration. Even if you’re working in different countries and time zones, and you can rest safe in the knowledge that it is all being automatically backed up. In small businesses, you often end up wearing multiple hats (did you ever expect to have to look into small business accounting software or how to run a business social media account?) so help spread the weight across the team.

What cash flow forecasting accounting solution is right for my small business?

Futrli is designed so anyone who runs a business can plan their future cash flow. There are cash flow forecasts that cover everyone from sole traders right through to larger finance teams, long term and short term.

Predict by Futrli is accounting software for any small business that poor on time but wants to keep track of their company finances better. It even automates your balance sheet and profit and loss.

Your cash flow forecast is a critical business management tool for small businesses. Cloud accounting gives your small business the freedom to update your forecast with live numbers as soon as they’re available, scenario plan for all possibilities, as well as the option to run your business remotely, from anywhere in the world. When data is at your fingertips, the possibilities are endless.

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