Budgeting, Forecasting and Cash Flow Management

Cash Flows

A full understanding of what cash flow is and how it impacts profit is central to operating a successful small business. Although profit may be the ultimate goal, it can’t become a small-business owner’s sole focus, because without a successful cash management plan, profit can be meaningless. Cash budgeting, cash flow forecasting and cash account analysis are crucial for preventing a situation in which a small-business owner reports a profit on paper but at the same time is facing bankruptcy.

Clearwater Professional Corporation has the expertise to prepare Short term (12 months) and long term plans (up to 5 years) to assist our clients achieve a clear perspective and objectives that would enable them to manage their liquidity. Our projections are worked out in close coordination with the client, detailing assumptions that are agreed with the client , taking into account:

  • Marketing and Sales plans
  • Product Mix , pricing and volumes
  • Cost of services or goods sold
  • Operating Expenses both fixed and variable
  • Inflation adjustments
  • Tax Calculations
  • Dividend payments
  • etc

Clearwater Professional Corporation further inputs these projections in accounting systems such QuickBooks that enables our client to view an exact comparison with actual results every month. The close tracking and our CFO advise help our clients to make proactive decisions enabling them to monitor the cash flows more accurately.

Profit Management

Growing a business requires setting short- and long-term goals. Often the short-term goals are the steps necessary to achieve the longer-term goals. You can choose related areas such as advertising and revenue, and base short- and long-term goals within these categories.

An example of a short-term goal is to increase your advertising budget each month for the next three months. An example of a long-term business goal that the short-term goal helps achieve is to double business revenue by the end of the fiscal year.

Clearwater Professional Corporation has the expertise to prepare Short term (12 months) and long term plans (up to 5 years) to assist our clients achieve a clear perspective and objectives that would enable them to manage their revenue, expense and profit targets. Our projections are worked out in close coordination with the client, detailing assumptions that are agreed with the client , taking into account:

  • Marketing and Sales plans
  • Product Mix , pricing and volumes
  • Cost of services or goods sold
  • Operating Expenses both fixed and variable
  • Inflation adjustments
  • Tax Calculations
  • Dividend payments
  • etc

Clearwater Professional Corporation further inputs these projections in accounting systems such QuickBooks that enables our client to view an exact comparison with actual results every month. The close tracking and our CFO advise help our clients to make proactive decisions enabling them to monitor the cash flows more accurately.

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