Jonathan Vowles Chartered Accountants

01234 752 566


I Think Every Business Deserves A Cashflow Forecast

But sometimes creating one can be difficult ...



We have invested in software to help us prepare cashflow forecasts for our clients who use market leading software for their bookkeeping. Of course, if you don't, then this is difficult ...

If you need help with preparing a cashflow forecast then get in touch!

If you need help with preparing a cashflow forecast then get in touch!

copyright: ptnphoto / 123rf stock photo

Otherwise, you can get a pretty good idea of the next month or two by using a simple spreadsheet. And you want to keep it simple! Having too complex a spreadsheet means that you spend ages updating and tweaking something that is out of date before you have even finished working on it.

"So keep it simple, don't create a rod for your own back!"

Your simple spreadsheet is in effect a list. Start off with the balance on the bank today, and list out all of the direct debits or other regular bank payments that you know are going to hit at some point, showing the date you expect them to clear your account and the amount.

Don't forget to have a running balance as well and colour code it so negative numbers show in red (if you are overdrawn). Next, put in any other payments or receipts that you know are going to happen, along with the expected date, amount and the running balance.

Doing this for expenditure is pretty easy but laborious. However, unless you have a very predictable income stream, doing this for your income is a lot harder. Sometimes it is easier to get to a point where you have put in all the identifiable things and identified your problem: how much you need to get in from your customers. Knowing how much more you need to come into the bank gives you a target to aim for.

Cashflow forecasts need to be current and up-to-date. Ideally, it needs to be updated every few days. Which is another reason why any spreadsheet needs to be really simple and using software to help is an advantage.

The point about having a cash flow forecast is that it gives that heads up. It looks forward to the end of the month and the month after. It shows you if you have a problem before you get to the problem and gives you time to plan for any problems.

"Would you like to know more?"

If you need help with preparing a cashflow forecast, with updating to market leading bookkeeping software or you need some advice on business finance then do give me a call on 01234 752 566 orclick here to ping me an email and let's see how I can help you.

Until next time ...


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More about Jonathan Vowles ...

I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.

My eclectic interests in growing and developing business span a number of areas, which can be summarised as strategic business advice and tax saving advice.

I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.

I relax by reading fiction and by getting away from the office in a campervan.


01234 752 566