Cash Flow Forecasts and Budgetary Control

Cash flow management is crucial for business success. Many businesses face difficulties not due to unprofitable operations, but because of cash flow issues. At MG Walker & Co Ltd, we provide expert guidance and tools to help you maintain healthy cash flow and effective budgetary control.

The Importance of Cash Flow Management

Cash is 'king'. Businesses often get into trouble not because they are selling products and services at a loss but because they run out of cash. This can be caused by various factors, including:

• Poor credit control
• Bad debts
• Loss of major customers
• Over-expansion
• Excessive staffing costs

Understanding Cash Flow Forecasts

A cash flow forecast is an invaluable management tool, typically prepared on a monthly or quarterly basis. These forecasts should be compared to actual events through Management Accounts, allowing for the identification of variances and implementation of necessary actions. Banks and other lenders frequently require cash flow statements when evaluating loan applications.

Implementing Budgetary Control

Budgetary Control extends beyond cash flow management, involving comprehensive forecasting of company expenditure and income on a monthly basis. This process enables regular comparisons between projected and actual figures, allowing for timely remedial action when variances occur.

How We Can Help

At MG Walker & Co Ltd, we provide both the software and experienced staff necessary to assist in this vital process. Our team is equipped to help you analyze variances and implement effective solutions.

For assistance in understanding and implementing cash flows and budgets, please contact our team at 01246 272 888 or 07768 997711.