Review your forecast to see whether there are likely to be any upcoming cash shortfalls or surpluses.
If you identify a shortfall, don’t panic – forecasting means you can take action to address it before it becomes a problem. This could include taking out or extending an overdraft, chasing up late payers, taking out a loan, or holding a sale to clear stock and generate revenue. Check out our guide Improve your cash flow with these handy tips for more tips, and talk to an ANZ Business Specialist about solutions to help you address any shortfalls.
Remember, most businesses experience some cash flow difficulties as they develop – it’s almost part of ‘growing up’ as a business.
If you identify a surplus, consider how you can put that money to best use. For example, you could put it into an interest-earning savings account or term deposit, or use it to grow your business – for example by purchasing new equipment or investing in new ways to market your business.
You can also use your cash flow forecast to assess the impact of many business decisions. For example, if you’re thinking of expanding or hiring new staff, factor into your forecast the likely costs of that investment, along with the expected increase in revenue, to see what it may mean for your bottom line.