Financial Planning
Cash Flow Planning
Cash Flow Planning is paramount to running a successful business and should be an essential part of your business plan.
Cash Flow Planning is when a business forecasts short & long term business expenses against the projected incoming cash. It allows you to anticipate trouble by creating a cash flow cushion, for unexpected expenses.
Budgeting your personal finances and saving for a rainy day, follows the same principles as Cash Flow Planning.
Determining your Cash Flow, is the first step of Cash Flow Planning.
For existing businesses you can use your actual data to chart out the monthly income and expenses. If you are just opening your business, develop a monthly budget based on market research & development.
Be realistic with your figures so you don’t run into surprises half way through the year.
Cash Flow Planning will give you a good idea what your bank balance will be 6 months from now (as long as you hit your projections). Just make sure to track and measure your spending monthly and to make adjustment every step of the way.
It is essential to plan for emergencies and unexpected expense. By planning ahead you can to avoid the expensive costs that could put you out of business.
contact Vermillion Financial Advisors today.