Hermit Business Solutions - CIMA-qualified cloud accountants in Baildon, Shipley and West Yorkshire
07847 586730
Cashflow forecasting

Profitable on paper but keep running out of cash?

Your sales figures look healthy. The accounts say you're making money. So why does the bank balance never seem to reflect that?

It's one of the most common, and most stressful, positions that a growing business can be in

You're not doing anything wrong, you're just flying blind on timing. A big invoice lands the same week as your VAT bill. A supplier wants paying thirty days before your customer pays you. Payroll goes out on the twenty-fifth regardless of what else is happening that month.

Without visibility on what's actually coming in and going out of your account, week by week, every one of those moments feels like a surprise, even though none of them really are.

The fix

A 12-week rolling cashflow forecast, not a spreadsheet done once a year

We build and maintain a 12-week rolling cashflow forecast for you, updated regularly rather than put together once at the start of the year and left to go stale. It shows what's actually due in and out of your account week by week, so that you can see a tight patch coming weeks before it arrives, not the day your balance runs low.

This sits alongside the book-keeping and management accounts work that we already do for you, drawing on the same up-to-date numbers, so there's nothing extra for you to gather or reconcile.

Who this is for

  • Growing businesses whose cash needs change faster than they can be tracked by feel alone
  • Businesses with seasonal income, where a strong month can mask a lean one on the way
  • Directors who've been caught out before, by a tax bill, a big supplier payment or a late-paying customer landing at the worst possible time.

Frequently asked questions

What is a rolling cashflow forecast?

A rolling cashflow forecast is a forward look at the cash moving in and out of your business, typically over the next twelve weeks, updated regularly as actual figures come in. Unlike a one-off forecast done at the start of the year, it moves with you, so it stays accurate rather than turning into a guess within a month or two.

How far ahead should a small business forecast cashflow?

Twelve weeks is usually the sweet spot for a small business. It's close enough to stay accurate and genuinely useful for day-to-day decisions, but far enough ahead to see a tight period coming in time to act upon it. Longer-range forecasts have their place for big decisions, but for staying on top of week-to-week cash, twelve weeks rolling works best.

How much does cashflow forecasting cost for a UK small business?

It depends on the size and complexity of your business and how often the forecast needs updating. We'll agree this as a fixed monthly fee alongside your other accountancy work, so there are no surprises.

How often is my forecast updated?

We update it in line with your bookkeeping, typically monthly, so it always reflects your real position rather than the one that you started with.

Do I need to already be using Xero, QuickBooks or Sage?

Accounting software is required as this means that we're working from live figures rather than reconstructing them. If you're not already on cloud software, we can get you set up as part of the process.

Worried about what's coming in the next few months?

Get in touch and we'll show you what a cashflow forecast for your business would actually look like.

Get in touch