Financial advisers have another weapon in their arsenal to help themselves and their business clients.
The Cash Flow Forecaster from MBIE is an online tool where business revenue, borrowing costs, cost of goods, and operating expenses can be entered.
The tool will then forecast cash flows and, says business.govt.nz’s director Matt Kennedy-Good, make it easier for business-owners to plan for the future.
“We encourage businesses to use this now, to plan for how the government’s support packages, including the loan guarantee scheme, will affect their cash flow,” he says.
“This tool will also support small businesses to have informed conversations with financial advisers and banks.”
This tool will also support small businesses to have informed conversations with financial advisers…
The Cash Flow Forecaster has been designed with help from the New Zealand Business Performance Panel, Treasury, accounting firms, and independent advisers.
Kennedy-Good says regular cash flow forecasting not only keeps businesses on top of their finances, but can also help spot opportunities to build business and predict peaks and troughs to avoid financial difficulties.
“Cash flow is the life blood of a small business,” he says. “With the current economic challenges it’s now more important than ever for small businesses to understand what this will look like in the future and planning for it now is more important than ever.”