Cashflow remains “crucial” to avoiding business failure

Apr 26, 2022

As SME’s continue to navigate the post-pandemic growth of insolvencies, accurate forecasting and cashflow management remains crucial to business survival.

It is often said that ‘cash is king’, that would be true if business owners truly understood their cashflow for the next quarter, 6 months and as far as out as a year.

The uncertainty in business due to the current economic conditions – supply chain issues, rising interest rates and the potential of wage increases, means that cashflow awareness has never been more important, especially in short-term financial reporting.

As of February this year, inflation was at 6.2 percent, and rising with a potential to move past 8 percent in Spring according to the BoE.

Understanding your cashflow projections is important – no its crucial, when it comes to risk issues such as late payments to suppliers and dare I say in terms of paying staff salaries.

Understanding your cashflow and having accurate forecasting can help you manage what you have and what you need, to alleviate any potential risk issues, giving you the time to make the right risk managed based decisions.

It’s all about understanding your financial risks and creating a framework for the business, building cashflow and forecasting that supports your business strategy.

Risk Dashboard has a ‘Finance’ module developed for business owners to fully understand what they need to do to manage cashflow and forecasting, how they can reach out for support and help, but more importantly how they can avoid becoming another insolvency statistic.

Our software finance partners at VFDPRO have created some of the best tools for accountants to work with their clients, creating visibility and accessibility to cashflow and forecast reporting.

Risk Dashboard allows you to understand the missing pieces of your financial jigsaw through it’s audit interface, VFDPRO’s accounting software then creates the insights for accurate financial and error free reporting.

Our combined technology, called Compliance+ creates opportunities for accountants to provide greater value for their clients, working more closely, having better conversations, allowing the client to ultimately achieve their business and personal goals more efficiently.

Risk Dashboard provides real-time evidence based continuous analysis for improved reporting and decision making for accountants, business advisors and their clients.

If you would like to know more about how Compliance+ can transform your clients business please contact Neil Campbell, Commercial Director at Risk Dashboard on info@riskdashboard.co.uk.

 

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