Financial Forecasting And Cash Flow

Financial forecasts, cash flow and budgets for small businesses

Anticipate the financial prospects of your future business.

Even if a business is efficiently managed and offers exceptional products or services, it can face failure when confronted with insufficient funds or resources during a financial crisis or recession.

By establishing a well-defined plan or strategy with clear objectives, one can obtain budget forecasts, assess business viability, and gain insight from potential investors.

The utilization of financial forecasts enables the prediction of a company’s future, facilitating the monitoring of financial health and the proactive identification of potential issues. Depending on the circumstances, such as being a new or rapidly expanding venture, or facing financial constraints, weekly, monthly, or quarterly forecasts may be necessary.

In addition to forecasting and budgeting, our assistance extends to preparing projected profit and loss accounts and balance sheets. We will also analyze any discrepancies in performance, providing explanations for their occurrence and aiding in financial protection and the formulation of a prosperous future plan.

Cashflow and sales forecasts

Here are two key factors for effective cash flow and sales forecasting in a company:

  • It is crucial to create a budget that aligns your cash flow with the projections from your financial forecast. This budget plays a vital role in ensuring the smooth operation of your business.
  • Regularly updating and maintaining comprehensive information is essential for accurate forecasting. By keeping your data up to date, you can make informed decisions based on reliable insights.

Tip: Instead of just skimming through sales reports to gather basic information, take the time to dig deeper. This is where you’ll uncover valuable insights that will enable you to make well-informed business decisions and maintain a strong competitive position.

Advantages resulting from financial reporting and related factors.

Upon reviewing your report, you can evaluate your performance in relation to your annual outcomes and make necessary adjustments to future forecasts, ensuring a positive cash flow.

In order to secure funds from banks or finance companies, it is crucial to present comprehensive financial data that encompasses robust planning, strategic considerations, and precise cash flow projections. This approach significantly enhances the likelihood of obtaining the required funding.

This principle applies whether you are seeking private equity investment or preparing for a potential sale, as it can ultimately determine whether or not you secure the necessary financial support.

What sets financial planning apart from forecasting?

A financial forecast involves predicting future income and expenses, whereas a financial plan outlines how income and expenses will be generated in the future. A financial plan represents the intended use of earnings by individuals or businesses.

While both processes impact future financial activities, a financial plan serves as a long-term roadmap, whereas a financial forecast provides a current prediction or estimation.

Looking for financial forecasting and cashflow services for your business?

Get in touch with one of our experts!

Futrli: Reliable cash flow forecasting for every small business!

Futrli is our preferred software solution for effectively managing the present and future finances of your small business, eliminating the need for cumbersome spreadsheets. With just a single click, you can effortlessly handle all aspects of VAT, payroll, invoices, bills, expenses, and cash flow.

We utilize Futrli to predict and estimate your cash flow, providing you with instant, automated, and precise results. The software offers two distinct features, which we will discuss in detail below.

Business planning and financial forecasting provide valuable insights, enabling a clear understanding of:

  • Viability of the plan or strategy
  • Expected profitability
  • General liquidity
  • Any funding requirements
  • Risks involved and return on the required capital
  • Critical business issues

There are various AI packages accessible that offer:

Using artificial intelligence (AI), Predict leverages advanced algorithms to make accurate predictions regarding your cash flow, profit and loss, and balance sheet. It also generates a three-year forecast encompassing sales, expenses, taxes, and cash flow. More complex or larger small businesses often depend on their accountants for strategic forecasting, planning, and modeling as part of their management reporting and board packs. Additionally, you can easily integrate the software with Xero or QuickBooks for seamless synchronization.

Get in touch!

If you believe that Futrli could be beneficial for your company or if you require assistance with financial forecasting or modeling, please don’t hesitate to reach out to us. We are more than willing to offer our support.

We have the expertise to assist you in preparing a financial forecast, whether it’s integrated into a business plan or developed as a standalone financial document. Our team will work closely with you to create a practical and achievable financial forecast that will contribute to the growth of your business.

Our Accounting Software partners

Once we have seamlessly integrated with your online software provider and banking apps, our fixed-price packages also include complimentary training sessions to ensure you are proficient in using the accounting software or provide a refresher if needed. This training aims to simplify your life significantly!

With the aid of our approved accounting software such as Xero, FreeAgent, and QuickBooks, we can assist you in effortlessly meeting all your UK tax obligations and deadlines.

Perform various tasks effortlessly with just a single click, including sending invoices, importing bank statements directly from your bank account, managing VAT, invoices, bills, payroll, and expenses – all conveniently covered in one place.

Kindly note that at present, Futrli exclusively integrates with Xero and QuickBooks.


Budgeting serves as the foremost and crucial aspect of financial planning. While establishing a budget may seem relatively straightforward, the real challenge lies in adhering to it. However, it is the discipline of dedicating time and effort to accurately document and reconcile your expenses that truly matters.

Budgeting involves quantifying the desired level of future revenues that a business aims to achieve, while financial forecasting focuses on estimating the amount of revenue or income expected to be attained in a future period.

Futrli is a predictive software solution that enables you to automate projections for cash flow, revenue, expenses, profit, taxes, customers, suppliers, and other non-financial factors. By leveraging Futrli, you can explore various scenarios and collaborate with your team to make informed decisions that lead to optimal outcomes.

A well-rounded financial plan encompasses seven essential components:

1. Budgeting and tax management.
2. Effective management of liquidity, ensuring convenient access to cash.
3. Strategizing financing options for significant purchases.
4. Prudent risk management.
5. Thoughtful investment of your funds.
6. Planning for retirement and wealth transfer.
7. Efficient communication and meticulous record-keeping.

To initiate the process of creating a new budget in Xero, navigate to the top menu and click on “Accounting.” From there, select “Reports” from the dropdown menu. In the financial section located at the top left corner, you will find the “Budget Manager” option. Within the Budget Manager, you will have access to the following sections: “Start,” “Actuals,” and “Period.”

One could argue that predicting revenue is the most challenging aspect when creating a financial forecast. While future costs can be estimated using historical accounting data, variable costs are closely tied to sales figures.