Cashflow management is critical to every business. It determines your ability to pay staff and suppliers, meet tax obligations, invest in growth, and manage periods of uncertainty. Even profitable businesses can experience financial pressure if cashflow is not actively planned and monitored.
Cashflow challenges are rarely isolated. They often indicate underlying issues such as rapid growth, inefficient processes, poor debtor management, rising costs, or misaligned payment terms. Addressing these challenges requires more than short-term fixes – it requires visibility, structure, and forward planning.
At Drumm Nevatt & Associates, we help businesses gain clarity and control through practical cashflow management and forecasting. By understanding how cash moves through your business, you can make informed decisions with confidence.
Our cashflow forecasting approach works alongside broader Business Budgeting Services and Advice, ensuring your forecasts are aligned with realistic budgets, seasonal patterns, and business goals. This allows you to anticipate upcoming expenses, manage tax obligations, and prepare for growth without placing unnecessary strain on cash reserves.
Where required, we also integrate cashflow forecasting with Management and Business Reporting services, enabling you to compare actual performance against forecast and quickly identify variances that require action.
If your bank or financier has requested a formal cashflow forecast or management plan, we can prepare this for you. We regularly support businesses through lending, refinancing, and funding discussions by producing clear, credible forecasts that meet bank expectations.
Our role goes beyond the numbers. Through our Business Development and Coaching services, we help business owners understand the drivers behind their cashflow, strengthen decision-making, and put practical strategies in place that support long-term sustainability.
Cashflow Management and Forecasting Services
Our cashflow services are designed to support businesses at every stage, from improving short-term cash stability to planning for future growth.
- Cashflow Forecasting
Preparation of short-term and long-term cashflow forecasts that provide clear visibility over future cash positions, funding requirements, and timing of major inflows and outflows. - Cashflow Management Advisory
Ongoing advisory support to help improve cashflow performance, optimise working capital, and address potential cashflow pressure early. - Assistance with IRD
Support with managing tax payment obligations, provisional tax planning, and aligning cashflow forecasts with Inland Revenue requirements. - Tax Advice – Domestic
Integration of domestic tax planning into your cashflow strategy so upcoming tax liabilities are anticipated and properly funded. - Reporting
Clear and meaningful reporting that compares actual cashflow against forecast, helping you monitor performance and make timely adjustments.
Benefits and Advantages of Cashflow Management and Forecasting
Effective cashflow management delivers tangible benefits across your business:
Supports bank lending and funding requirements through reliable and well-structured cashflow forecasts.
Reduces late payment penalties and interest by identifying pressure points early.
Improves communication with banks, financiers, and suppliers by strengthening financial credibility.
Provides clear insight into cash and liquidity, supporting better operational and strategic decisions.
Identifies key cashflow drivers and your Cash Conversion Cycle, highlighting opportunities to improve efficiency.
Allows you to plan for large or irregular outflows, such as tax payments, capital expenditure, or seasonal costs.
Enables monitoring of actual cashflow against forecast using your accounting or reporting software.
Provides confidence that cashflow needs are understood and funded, reducing uncertainty.
Improves business processes that strengthen cashflow, profitability, and business value.
Supports sustainable growth through controlled and informed decision-making.
Cashflow Management and Forecasting – FAQs
What is cashflow management?
Cashflow management is the process of monitoring, analysing, and optimising the movement of cash in and out of your business. It ensures you have enough cash available to meet obligations while supporting growth and stability.
What is cashflow forecasting?
Cashflow forecasting involves predicting future cash inflows and outflows over a defined period. A cashflow forecast helps businesses anticipate shortages, plan for large expenses, and make informed financial decisions.
Why is cashflow forecasting important for businesses?
Cashflow forecasting provides visibility over future cash positions. It helps businesses avoid cash shortfalls, plan tax payments, meet lending requirements, and respond proactively to changes in trading conditions.
How can cashflow management improve business performance?
Effective cashflow management improves decision-making, reduces financial stress, strengthens relationships with lenders and suppliers, and supports sustainable growth by ensuring cash is available when needed.
Do banks require cashflow forecasts?
Yes, banks often require cashflow forecasts as part of lending, refinancing, or covenant compliance. A well-prepared forecast demonstrates financial control and supports funding discussions.
How often should cashflow forecasts be reviewed?
Cashflow forecasts should be reviewed regularly – monthly or quarterly for most businesses – and updated to reflect actual performance, changing conditions, and new business plans.
Client Testimonial
“I want to express that it’s not just about professionalism; sometimes you need to feel comfortable with your accountant on a personal level. I must say that whenever I have spoken with you, it’s felt like talking to a family member, which is really nice for us.
Thank you for maintaining professionalism while adding a personal touch. When you were preparing the forecast for us, my wife and I appreciated how seriously you took it. I am confident that you treat every client with the same level of dedication, but on a personal level, it was reassuring to know that you approached to our business as if it was your own. Your hard work truly showed in the forecast.
I would highly recommend your services to all my friends. You have done an amazing job for us. Thank you very much for all your help. I look forward to continuing this great relationship with you in the coming years.”
Nirmal and Katrin Rathi
Ready to get your cashflow under control?
Get in touch with us now. Let’s work together to unlock your business’s full potential with our cashflow management services.
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