Five Key Reasons to Forecast Your Cash Flow

Many overextended small business owners are weary of cash flow analysis. “Analysis” of any kind sounds difficult, and who has the time or energy to make future projections? More importantly, why bother?

Consider that poor cash flow is the number one reason small businesses fail. An alarming 82 percent of companies fail due to cash flow issues. Convinced you don’t need to worry because your restaurant is profitable? Think again. Profitable companies fail all the time for the simple reason that they run out of cash.

Projecting your cash flow can help you plan for the future, avoid unexpected shortfalls and even qualify for a small business loan.

Beyond keeping your doors open, forecasting your cash flow can take the guesswork out of where you’re going to help you make smarter business decisions. A little planning goes a long way, and it doesn’t have to be difficult.

These days, intuitive online tools can do the hard work for you, automatically generating cash flow projections…