In a client facing article this week we pointed out the benefits of using forecasting APPs to help clients manage their cash flow.

When firms are profitable, credit control is managed and profits are being retained in the business, cash flow tends to look after itself.

For a vast number of businesses, COVID-19 has placed unprecedented strains and one area where this is keenly felt is downward pressure on cash resources.

If you actively work with clients utilising cloud accounting software now may be a good time to consider an APP to create cash flow reports that can be set-up, process and discuss reporting on a periodic basis?

The benefits for clients are critical. Unless cash flow is monitored for at least a year ahead businesses will not have the option to plan for increasing their capital base or seeking other funding from banks and other investors.

The key is gathering information.

The main benefit for us as advisers is the real-time link of the APP with accounting data, that once set up, will provide almost instant pictures of future cash flow movements.

If you are aware of clients without this facility, and that would benefit, discuss with your partner or manager and if appropriate, advise clients to consider this to manage their cash flow.

Source: New feed