Last week I was honoured to take part in a conversation with Float Cashflow forecasting software and it has cemented my belief that cashflow management is the number one piece if business knowledge that I wish all business owners would embrace.
Using Float for Sensible Cashflow Forecasting
We’ve been using Float in our accountancy business for about eight months now and as the pandemic has hit the businesses we work with it has been THE software of choice.
Using Float has enabled us to present different scenarios to our clients in a way that looks simple and easy to understand. It helps present a picture view of what different business scenarios could look like when you change variables and factors on the cash flow forecasting. It really is dynamic, intelligent and invaluable.
Is it a Mindset Issue?
When I work with clients and take new clients on, there is often a phrase that is repeated in those first few conversations;
“I’m rubbish with numbers. I can’t do cashflow because I’m crap at maths.”
I truly believe that this is actually a mindset challenge and one that we get to overcome together with a bit of education around cashflow. After all, when you break it down if you have no confidence in any aspect of your business it is usually caused by a lack of knowledge in that area. Knowledge and solid education and expertise empowers you to understand the subject and tackle it with confidence. Cashflow is no different to any aspect of business but I’d argue it is one that you should never ignore and instead build your knowledge so it works in your favour with every day to day business decision.
Making Mates with Cashflow Management
Many business owners only tackle their understanding of cashflow when the money is running low but I know that solid cashflow management skills help during times of financial feast as well as famine.
A lot of people seem to feel that cashflow is something we get to look at when there is a problem. Actually, the opposite is true. When you have surplus cash that is the time to see how you can invest into the business. It may be a time to look to take on new staff, new equipment or new premises that will allow for you to provide more in your business and earn more. Knowing where you are with your cashflow right now and at points in the future (for example, using the predictive nature of Float) means that you get to focus on positive business growth.
There is no business in the world that does not experience cashflow issues at some point. Even the most successful businesses have periods where they keep one very close eye on the cashflow. It is a normal part of the business process.
Looking at cashflow, and expanding your knowledge is where every business owner gets to start. It is about learning how to manage the cashflow so you have a full and complete picture of your business but also using tools like Float to predict potential challenges or opportunities for growth in advance. If you need support through something like this, please speal to your accountant or arrange a chat with us at Insight Finance Solutions.
Use the Pandemic to Get Clued Up
During this time of COVID-19 it has proved to be a great time to get real and look at cashflow in depth. I would urge every business owner to continue this and expand their understanding of cashflow management beyond the post-pandemic business landscape. Developing the knowledge and then getting into the habit of looking at your cashflow on a consistent basis will be the biggest and best thing that will help you with day to day business decision making to drive your business on a positive upwards trajectory.
If you haven’t gathered by now – we’re super passionate about all things cashflow here at Insight Finance Solutions! If you need any help understanding cash flow management or you’d like me to demonstrate how Float works then I’d love to arrange an informal and confidential chat.
Helen Crapper is the founder of Insight Finance Solutions. Helen and the team specialise in accountancy advice at every stage of business and help make finances stress free for clients. Helen is also a coach and uses money mindset coaching to help business people remove their personal blocks and limiting beliefs to grow as people while growing their businesses.
To have a chat about your business finances and how Insight Finance Solutions can help you, get in touch.