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Cash Flow and Budgeting Analysis

So what is a Cash Flow and why is it important?

  • A cash flow statement is one of the most important financial statements for a project or business.
  • Good cash management can improve a company’s liquidity, reduce costs, and increase profitability.
  • A cash flow statement is not only concerned with the amount of the cash flows but also the timing of the flows. Many cash flows are constructed with multiple time periods.

We can help you maintain optimal cash flow levels by tracking sources and uses, forecasting, and budgeting accordingly.

Cash Flow Budgeting

Cash Flow Budgeting is an important management tool because it enables businesses to manage their business – i.e. to take informed decisions based on management information (i.e. how actual performance compares with budgeted performance).

Advantages of Cash Flow Budgeting

  • Helps you cut out waste or change supplier, when business costs too high –
  • Helps you increase advertising/promotion/sales effort, when business sales too low –
  • Helps you remove bottlenecks, labor efficiency etc., when business production too low
  • Help you set target projections and enable forward planning.
  • Helps you measure performance.
  • Helps set motivating targets for everyone to work towards achieving.
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