Can my accountant help with cashflow forecasting?

Yes—cash flow forecasting is one of the key areas where an accountant can offer valuable support. While many associate accountants primarily with tax and compliance, they’re also well-equipped to help you understand and plan your business’s future financial health.

What Is Cash Flow Forecasting?

Cash flow forecasting involves predicting how money will move in and out of your business over a period—usually the next few weeks, months, or even a full year. It helps you anticipate shortfalls, plan for big expenses, and avoid surprises that could disrupt operations.

How Accountants Help with Forecasting

1. Data Gathering and Organisation
   Accountants start by looking at your historical income and expenses. They ensure your bookkeeping is accurate and up to date—this forms the basis for reliable forecasts.

2. Creating Realistic Projections
   Using trends in your sales, expenses, seasonal patterns, and industry benchmarks, your accountant can build a forecast that reflects your business’s unique rhythms.

3. Scenario Planning
   Good accountants don’t just give you one projection. They often create “what if” models—like what happens if sales drop 20%, or if you hire new staff. This helps you prepare for multiple outcomes.

4. Highlighting Risks and Gaps
   A forecast can reveal periods where cash might be tight. Your accountant can point these out in advance, giving you time to make adjustments—whether that’s chasing invoices, delaying non-essential spend, or arranging short-term financing.

5. Helping You Make Informed Decisions
   With a clear view of your expected cash position, you can plan with confidence. Whether it’s launching a product, expanding a team, or making a large purchase, the forecast shows if it’s financially viable.

When Is Forecasting Especially Helpful?

• During rapid growth

• When applying for funding or loans

• In seasonal businesses

• Ahead of large investments or expenses

• If cash flow has been unpredictable

In Summary

Accountants do more than crunch numbers at year-end. With their expertise in interpreting financial data, they can help you plan ahead, reduce risk, and maintain steady cash flow—so your business stays on track.