Why Cash Flow Forecasting is Advisory Gold

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An essential but underdone advisory service that CPA’s should be considering is cash flow forecasting.

Why? It’s high value to the customer and after all, we all know that without liquidity, businesses wither and die and should be high-value to the accountant too in terms of fees and potential follow-on work.

Every annual financial cycle is an opportunity to sit down and set goals and project numbers forward with your significant clients.  Looking forward is not only important, but often essential to identify and avoid any looming business issues or, more positively, for identifying new opportunities too.

This work was a key part of my own advisory practice growth and could be for yours too. My basic proposition to the accounting industry is that every business client deserves a cash flow forecast. 

Every business client deserves an understanding of cash and liquidity for better decision-making – and your care and attention as a trusted advisor to “make it happen.” So don’t wait to be asked for help by a client in cash flow trouble or reactively when the bank needs some projections – start thinking now about what cash flow-related services you could offer.

Examples include:

  • Annual cash flow forecasting
  • Scenario Planning
  • Cash Flow management
  • Pricing & Debtor reviews
  • Debt and Capital review

Annual Cash Flow Forecasting

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About Richard Francis

Richard Francis

Richard Francis, CA is Founder & CEO of Spotlight Reporting which offers advanced reporting, cashflow forecasting, dashboard and multi-entity analysis to accountants and organisations globally.

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Jun 11th 2018 21:49

Having just come back from Xerocon - where there was a lot of talk about a more gentle slope for firms moving from compliance to simple - and only then a more complex advisory this is really great advice

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