Cash flow forecasting is essential for businesses because you can predict your annual profits, potential debts and understand what contributes to the most ingress and egress of money.
Atlanta, GA (PRWEB) September 23, 2014
C2C Resources, a national expert in commercial debt collection, released a tip sheet today with top tips when forecasting cash flow for a business. The tip sheet comes following the release of Experian/Moody’s Analytics Small Business Credit Index report for the second quarter that found small businesses fared better than the first quarter.
Todd Tinkler, President of C2C Resources, released the tip sheet because he believes that as businesses gain more economic growth, they need to be able to manage their cash flow properly to take advantage of the economic conditions of the quarter.
“Cash flow forecasting is essential for businesses because you can predict your annual profits, potential debts and understand what contributes to the most ingress and egress of money,” explained Tinkler. “Whether a company is experiencing success or not, it is one of the most important things a business should be spending their resources on.”
Tinkler suggests the following regular tips when forecasting a business’s cash flow:
1. Regularly evaluate variable costs.
Best practice when forecasting cash flow is to evaluate your variable costs or overhead costs such as travel. By evaluating these costs, if there are problems with the cash flow, this could be an easy place to cut costs and allow for more money inside the company.
2. Regularly evaluate fixed expenses.
Monthly rent costs could be considered a fixed expense, but when evaluating how to better the company’s cash flow, this could change. Consider whether the company needs the space they are currently in. Serviced office spaces, shared office space and working-from-home privileges are all popular choices that could decrease the cost of rental space.
3. Regularly review the company’s actual cash flow against the forecasted cash flow.
Not only will regularly reviewing the company’s cash flow help the company better forecast for the future, but it will ensure that the forecast does not leave out an important aspect of the company’s budget.
About the Small Business Credit Index:
Experian’s Business Information Services and Moody’s Analytics have been releasing the Small Business Credit Index report on a quarterly basis since 2010. The report features an in-depth analysis of the health of small business credit throughout the United States.
About C2C Resources:
C2C Resources is a global Commercial Debt Collection agency headquartered in Atlanta, Georgia. The company collects commercial debt on behalf of their over 25,000 clients and is considered one of the top agencies in the country. The executive team at C2C brings more than 60 years of experience helping businesses collect their accounts receivable.
C2Cs powerful combination of Profit Maximizer, InfoMax Collection System, and Legal Forwarding Edge, can help your company be more effective with your own in-house collecting and maximize recovery of accounts turned over for collection.