Understanding Your Expected Cashflow and Profitability

Before a business is commenced (or purchased), it is important to understand what the financial future could hold. Bentleys is able to provide you with assistance to provide projections for:

  1. Profit
  2. Cashflow

Whilst there are relationships between the above, two they do not always change in harmony with each other.

Cashflow

A Cashflow forecast will enable you to see the demands that will be placed on your business cash reserves and if any financing facilities need to be put into place. If established correctly, this document can sometimes be heavily relied on by financial institutions when assessing finance applications.

Profit

Budgeted profit and loss statements enable you to see what the expected return will be from the business. This can be related back to the invested capital in the business and provide an understanding of future performance.