Cash Flow Forecasting in a COVID-19 World

13th July 2020

Highlights

  • With the end of JobKeeper payments in September, it has become increasingly important for SMEs to prepare and monitor their short term cash flow forecasts.
  • Ensuring you are preparing your 30, 60 and 90 days cash flow forcast will keep you agile and provide you a framework to assess your business position and compare alternative courses of action.
  • If you need any help with preparing short-term forecasts, reach out to Scott Lindeblad, Eric Flammang or Laura Johnstone at William Buck.

With so much happening over the past five months due to COVID-19, it has been virtually impossible to forecast your businesses cash flow past seven days. However, now we have regained some stability, your forecasts should have improved and been able to provide you some level of predictability around your short-term cash flow needs.

Unfortunately, we are heading towards another period of uncertainty with September looming down on us and the end of JobKeeper payments. Even if the Government does decide to extend the JobKeeper payments scheme, it most likely will not extend to all industries. So it is now more important than ever to ensure you are preparing and monitoring your short-term forecasts on a 30, 60 and 90 day model. By doing this, forecasting will assist your business to stay ‘agile’ in the following two major ways:

1.      It will provide you with a framework to assess and re-assess your business’s current position and available options; and

2.      It will provide you with a powerful tool to assess your options and compare alternative courses of action your business could take to come out of this difficult time as strong and financially stable as possible.

If you have not been preparing short-term forecasts, this is something you should be implementing as soon as possible to obtain a better picture of where your cash flow is heading.

William Buck are experts in cash flow forecasting and will be able to help you get this up and running so you can use the insights a forecast provides, to start thinking more strategically about the future of your business.

Visit the William Buck Digital Economy Hub for more information. Contact Scott Lindeblad at our Brisbane office or Eric Flammang and Laura Johnstone at our Gold Coast Office to see how you can better understand your businesses cash flow.

 


William Buck is ACS Queensland’s Preferred Accounting Partner. Scott Lindeblad and the William Buck team provide complimentary 30-minute consultations for ACS Queensland members. Email Scott at [email protected] to arrange.