There is certainly some very good data coming though at present albeit combined with some not so good news, so things are looking good for the UK economy.

I read today that the manufacturing sector grew last month at the strongest rate for 15 years – and Mr Noble (chief executive at the Chartered Institute of Purchasing & Supply) said:

“Companies reported that higher demand from export markets wasn’t just on the back of the softer sterling but also improving global market conditions. Meanwhile there were mentions that many production lines, which ground to a halt at the height of the recession, kicked into action again. Good news was also reported on the job front as firms – mainly SMEs – hired staff for the second consecutive month in line with increased levels of production.”

So now is a good time to start looking at either setting up in business or buying one, as the outlook is on the up and yet interest rates are still relatively low. I appreciate that it is not so easy to get bank lending right now, but so long as you have a good solid proposition backed up by a good business plan and sound cash flow forecasts you should still get a loan.

Cash flow forecast software the bear essentials.

In preparing a good cash flow forecast for a bank or and investor you need to know what the forecasts should include. I have therefore put together a list of what you should include, as follows:

- The cash flow projection should realistically be for a period of not less than 36 months ahead. And for each of the three years these should be presented on a month-by-month basis.

- The forecasts should distinguish between the business cash flow and the business profit and loss figures. Cash flow of a business relates to the timing money is received by the company and paid out of the company and would include VAT in the UK and Europe and Sales Tax in America. Whereas your profit flows should include your income/expenditure figures net of VAT or Sales Tax and will be shown in the month invoiced/incurred irrespective of the month in which they are either received or paid. For example, if you invoiced your client in October and they took 30 days to pay you, your profit and loss would include the amount in October and your cash flows would include the same amount (inclusive of VAT or Sales Tax) in November.

- A balance sheet should be presented at the end of each period end, so in a 36-month forecast this would mean you would have three balance sheets. This is essential, not only to show to your investors or the bank what your balance sheet will look like, but also this is a good way to prove that your figures work or balance. Producing a balance sheet will make your cash flow forecasts look very professional.

- A good cash flow forecast will demonstrate the businesses breakeven point, which banks especially like to see if they are lending, so that they will be able to see the level at which your sales can drop to before your business reaches its break even point. They will then be able to see how sensitive your business is to falls in sales should your predicted sales forecast not work out.

- You should disclose within the cash flow part of your forecasts the receipts you get from business bank loans, proprietor or shareholder loans and any director loan advances.

- If your business is not a start-up business your forecasts should include an opening balance sheet position.

– Your cash flows should present within the forecasts the timing of payments for VAT or Sales Tax, whether this be on a monthly, quarterly or annual payment basis.

- Your cash flows need to take account of company tax payments within the cash forecast reports.

- Purchases and sales of fixed assets should be included and shown as a separate line on the cash flows where appropriate and any depreciation charge on these fixed assets should be disclosed within the profit and loss section of the reports.

– The reports should include the company name and of course the period to which the report relates.

Cash Flow Forecasts Made Easy with our Cash Flow System

Companies with strategic business plans enjoy greater revenue and profit growth than companies that don’t have one!

In 1993, AT&T commissioned a study of small businesses. The survey found that companies that had a business plan were far more likely to succeed than those that did not. Notably, only 42 percent of the businesses surveyed in the AT&T study had a formal business plan – a statistic that hasn’t changed much in the past 10 or so years. Yet according to more recent studies, companies with a strategic plan enjoy greater revenue and profit growth than companies that don’t have one, and their failure rate is much lower.

Commenting on the study, Ian MacMillan, the director of the Sol C. Snider Entrepreneurial Centre at the University of Pennsylvania’s Wharton School said, “A comprehensive and complete business plan is crucial to the success of any business.”

Most small businesses fail within two-to-five years of start up, and failure rates are significantly higher among businesses without a formal plan, can you afford not to have one? Luckily, thanks to Bowraven’s Cash Flow System, putting the crucial numbers side of the plan together has never been easier.

Want to be taken seriously

It is likely that most small businesses can operate just fine without a mission statement and accounting software during their first year or so of operation. However, if you want to secure a bank or small-business loan, be taken seriously by investors or improve your chances of long-term success, a business plan and cash forecasts are a must.

Save Time

Business owners who don’t have a plan don’t realize that it can save them time. People tend to think about it as something that they can put off because they don’t have time to prepare it. In the meantime, they’re losing the potential to do better. A good business plan not only helps you secure funding, it serves as a road map, a diagnostic tool and an employee motivator.

Imagine if you will, trying to get from one side of America to the other without a road map or even crossing from one side to the other of a major city like say London without an A to Z map – You could do it, but with a road map your journey time will be reduced considerably and it will be a guaranteed success! Without a road map your journey time will be longer, you will end up using more fuel and having to spend more time stopping for food etc. Which if compared to a business without a plan and cash and profit forecasts would be to have a business with higher costs and lower revenues. This would reduce any guarantee of success or certainly taking a longer time to achieve success!

The Forecasting Template will save you time from your preparing your own forecasts from scratch…

All of the hard work has been done for you – you only have to enter your data and out pop the reports for your cash and profit forecasts.

“It took only 10 minutes and I had a complete cash and profit forecast printed and ready for the bank, including balance sheets! Well worth the small investment I made in this easy to use template”, Adrian B.

“I used to hate putting cash forecasts together before I purchased this Excel template – I always used to worry whether the figures balanced, but now I can revise my figures with complete peace of mind”, Simon O.

Easy to Use

If you don’t have any prior knowledge of using Microsoft Excel, don’t worry because this Forecasting Template has been designed with this in mind. You will have no problem understanding what you need to do to enter your data as it is so simple to use and comes complete with a user manual – simply enter the data in the cells designated for data entry and the Template does the rest.

Low cost

We are confident that we are one of the cheapest on the market for cash forecasting tools – you could spend hundreds of £££s with Sage Software, but why bother when you can use our Forecasting Tool – we have made your decision process even easier by letting you ‘Try It Before You Buy It’. So why not be our guest and see what you think to our easy to use Excel Template by downloading it FREE right now!

If time is pressing and if you want to get started on your business plans now you can download this Forecasting Template from our website immediately and get started straight away.

A Must Have Business Tool

Our Forecasting Template is a must have business tool. It has been designed with every type of business in mind whether for a new business just starting out or for a business which is looking for further funding or for producing cash and profit forecasts for management. Cash flow forecasts should be prepared and used by all businesses most of the time and the cash flow forecast can serve three main purposes; firstly, to help prepare for the inevitable cash flow peaks and troughs that all businesses go through; secondly, to forecast how much funding the business might need by way of an overdraft facility or bank loan for expansion plans; thirdly, the forecast, or certainly the profit element of the forecast, can be used as a budgeting tool for the expenditure for the company and as a target for the sales team of the business.

Cash flow forecast can be used to complement month end and year end accounts preparation. They can be used for both internal management use or for external use for a lender, such as a bank to evaluate how you will be able to repay the funding.

Many businesses fail due to a lack of sound financial forecasting, so to have a well structured and thought out cash and profit forecast is vital to the starting of a business as it is in the continuing success of an existing company. Using our Cash Flow System will help you to prepare your forecasts for what ever reason you choose and it will aid in producing or can be used to support your business plan.

Our Cash Flow System is an easy-to-use cash and profit forecasting solution to help you gain greater control over your cash flow and your business. It has been designed specifically to help businesses plan more efficiently for the future and is an essential tool that every business should have.

Enter your data and Cash Flow System does the rest:

- Cash Flow reports
- Profit forecasts
- Balance sheets
- Loan reports
- Handles VAT and company Tax
- Factoring and Invoice discounting facility
- Fixed assets and automatic depreciation
- Customer credit facility from Zero credit (cash) to 120 days
- Supplier credit facility from Zero to 120 days
- Opening balance sheet entry form

Designed using Microsoft Excel, an easy to use business tool that will save you time and avoid your having to start from scratch each time.

Comes with a user manual and you can copy it to make as many cash flow versions as you wish.

Click here to order the cash flow forecasting template software…