Cashflow Forecasting
CoggerGurry • October 10, 2023
Cashflow forecasting is critical for small businesses.
What is it?
Cash flow forecasting is a method of predicting cash inflows and outflows to see how much money you’ll have in the future. It provides a window into your business’s financial health and can help plan spending.
A cash flow forecast is in contrast to a cash flow statement. A statement focuses on past cash flows; a forecast predicts the future. It’s essential that you understand your cash flow cycle, which boils down to whether you’ve got more money coming in than going out. If you have more cash going out, you must address it quickly.
Staying on top of your business cash flow helps you pay bills on time and helps ensure you can pay yourself. When costs are rising (as per the current climate), it becomes even more imperative that businesses get their cash flow management right, and cash flow forecasting is one way to do it.
Benefits
The benefits include:
- spotting cash shortages and giving you time to work on contingency plans, whether delaying spending, requesting extra credit from suppliers, or securing a business loan.
- assessing the affordability of your growth plans – for example, they can show if there will be enough money to buy new tools or hire a new employee.
- ensuring you have enough money to pay you, the business owner!
- identifying quickly if expenses are climbing or income is slumping.
- highlighting fixable cash flow problems such as slow-paying customers, impractical payment terms, seasonal cycles, or over-reliance on high-cost finance.
Key Components
The key components are –
- starting position (cash in the bank).
- expected cash in (hopefully mostly from sales but may also be from loans or sales of assets).
- expected cash out.
- net cash flow shows if cash reserves have grown or shrunk.
- closing balance.
How often?
- Businesses can do cash flow forecasting for any timeframe and duration. As you might imagine, it gets harder to accurately predict incomings and outgoings the further into the future you go. But whatever range you choose, it’s a good idea to keep refreshing your forecast.
- If you run a 12-month forecast, for example, with a column for each month, you might refresh it at the end of each month. Drop the last month off, add another month to the future, and check all the forecasts in between to see if anything needs updating.
Ways to increase profitability
For most businesses, the easiest way to improve profits isn’t landing the next big client. Instead, it’s improving the little things, such as:
- Increasing prices by a small margin, such as 5% or in line with CPI.
- Collecting money owed to you faster.
- Checking that you’re not paying too much for overheads like power, the Internet and office supplies. These can be small amounts, but they add up over time.
- Look to renegotiate some of your earlier agreements.
Monitoring of cashflow and staying mindful of your ins and outs can bring positive changes to your business and gets you working on your business instead of in it. If you need any help establishing a process or need some accountability CoggerGurry can assist you with this process. Contact us now to get started on your cashflow forecasting journey.
New Identity Verification Requirements – What Our Clients Need to Know From 1 July 2026, new Australian Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation introduced additional obligations for accounting firms providing certain services. At Brentnalls Western Victoria, we are committed to making this process as simple and seamless as possible for our clients. Why are these changes happening? The new legislation is designed to help protect Australia's financial system from money laundering, terrorism financing and other financial crime. Many industries, including accounting, legal and real estate services, are now required to verify the identity of clients before providing certain regulated services. Will everyone need to verify their identity? No. These requirements only apply where we are providing a designated service under the AML/CTF legislation. We will notify you if your services falls under this category. Many of our clients will notice no change to the way we work together. If identity verification is required, we'll let you know and guide you through the process. How does the process work? Where identity verification is required, we'll send you a secure electronic verification request. The process is simple and usually takes just a few minutes using your smartphone or computer. You'll be guided through the steps, which may include: confirming your personal details providing identification documents (such as your driver's licence or passport) completing a quick facial verification to confirm your identity. Once your identity has been successfully verified, we'll continue with your engagement as normal. Is my information secure? Yes. We use BGLiD , a secure electronic identity verification platform designed specifically for Australian professional firms. Your personal information is encrypted and handled in accordance with Australian privacy laws. How can I help? If we ask you to complete an identity verification, we appreciate your prompt response. Completing the verification early helps us commence work without unnecessary delays. Want to know more? For more information about Australia's AML/CTF reforms and why businesses may ask for identification, visit the Australian Transaction Reports and Analysis Centre (AUSTRAC): AUSTRAC – Why you might be asked for ID Questions? If you have any questions about these new requirements or the identity verification process, please contact our team. We're happy to explain what the changes mean for your individual circumstances.
We are delighted to announce the promotion of Erin White to Principal and Business Manager at Brentnalls Western Victoria. Since joining the firm in 2024, Erin has played a key role in leading our people, strengthening our operations and helping shape the future direction of the firm. Erin's progress in the firm reflects her leadership across our business and her commitment to delivering exceptional outcomes for both our clients and our team. In addition to overseeing business operations, people and culture, strategic projects and marketing, Erin also works alongside clients to help them build stronger businesses through strategic planning and practical implementation. Having grown up, attended school and raised her two sons, Deacon and Xavier, in Western Victoria, Erin is passionate about supporting the businesses that help our regional communities thrive. Outside of work, she enjoys travelling, camping and spending time with her partner, Nathan, family and friends. Please join us in congratulating Erin on this exciting step. We look forward to the continued leadership and expertise she will bring to Brentnalls Western Victoria and to the positive impact she'll continue to have on our clients, our people and our community.
Succession Starts Long Before Retirement With Stacey Shelden, Director, Brentnalls Western Victoria One of the biggest misconceptions I see is that succession planning begins when someone is ready to retire. In reality, that's often when families find themselves under pressure. The most successful succession plans I've been involved with didn't begin because someone wanted to step away from the business. They began years earlier, with simple conversations about the future. As we begin a new financial year, many business owners are taking stock of the year that's been and planning for the one ahead. They'll review financial performance, discuss tax outcomes, consider investments and set business goals. They're all important conversations. But I'd encourage you to ask one more question: Where do we want this business to be in ten years' time and are we preparing for that future today? Succession isn't simply about transferring ownership. It's about ensuring your business, your family and the next generation are ready for what's ahead. It means sharing knowledge, mentoring future leaders and gradually introducing the next generation to the decisions that shape the business. It means creating opportunities for them to understand not only how the business operates, but why decisions are made. Just as importantly, it means having open conversations as a family. Do everyone’s expectations align? Does the next generation actually want to take over the business? What does a successful transition look like for each family member? These conversations can feel difficult, which is why they're often delayed. Yet, in my experience, it's the families who start talking early who navigate succession with the greatest confidence. They have time to explore options, work through differing views and make decisions without the pressure of looming retirement or unexpected life events. The start of a new financial year is a natural time to think beyond the next twelve months. While you're planning for business growth and reviewing financial performance, take the opportunity to also consider your long-term vision. Because succession isn't a project to complete when retirement arrives. It's a process of preparing your business, and your family, for the future. The earlier you begin, the more choices you'll have, and the stronger your business will be for the generations that follow.
