This guide to cash flow forecasting has been designed to provide an insight into cash flow forecasting. It describes the nature of cash flow, how to forecast it and explains why it is so important to forecast as accurately as you can to enhance short term business survival and develop longer term prosperity.
Intended Readers: This guide is primarily aimed to assist those who are not familiar with cash flow forecasting, in particular, individuals who are thinking about starting their first business venture as well as those who have recently started their first business and are now trying to better understand and manage their current and potential future financial situations. The information provided in this guide has been prepared for individuals who do not have a financial background. Any financial jargon used in this guide is explained as are the basics of the methods and techniques used that enable you to forecast your business cash flow.
Important Notes:
1. Rules on taxation are changed by Government from time to time. Please always refer to the Her Majesty’s Revenue & Customs (HMRC) website for the latest information on taxation and allowances. HM Revenue & Customs - GOV.UK (www.gov.uk)
2. You should keep all your financial receipts and any paperwork associated with your trading activities. It is a legal requirement and your Bookkeeper, Accountant or HMRC Inspector will want to see them all when it comes to producing your end of year accounts and/or calculating any tax liabilities you may owe.
