Understanding your financial situation is important in times of uncertainty. It can also help you have better conversations with your bank or advisor.
business.govt.nz has created a Cash Flow Forecaster tool to help you. Cash flow is critical to every business, showing what’s coming in and going out. Forecasting your cash flow helps you understand your business health.
Simply head to to tools.business.govt.nz, describe your financial position and the changes you expect and it will help you forecast your cash flow.
The forecast uses data about your cash in, cash out, assets and liabilities. If you don’t have bank or financial statements for the current month, use the latest data available.
Cash in covers all the money that came into your business.
Cash out covers all the money that left your business.
Assets and Liabilities
Looks at cash-related assets and liabilities, ones that will quickly turn into cash in or out.
The final graph forecasts your cash flow for the next year. As a starting point it has assumed your figures are the same each month. You can edit them to update your forecast.
Once you’re happy with your forecast you can add a scenario to compare.