Why Cash Flow Forecasting Is Essential

Overall business confidence in New Zealand has shown some tentative signs of improvement in 2025. But, the economic reality for many small businesses remains challenging.

Managing your financial health with cash flow forecasting

Coping with weakened sales revenue and rising costs is a recipe for cash flow issues. With less income flowing into the business and higher expenses flowing out, the likelihood is that many Kiwi small businesses are facing a potential cash flow crisis.

The key to avoiding these cash problems is to be in complete control of your future cash position – and that means going deep with your cash flow forecasting.

 

Cash flow forecasts can be used to:

  1. Avoid financial trouble

  2. Plan for future cash shortcomings

  3. Meet your tax obligations

  4. Plan asset purchases

  5. Plan for growth or expansion

  6. Make an informed decision on whether borrowing is right for you

  7. Benchmark your performance

  8. Test different strategic scenarios

  9. Figure out the best time to invoice

  10. Build your case for investment

  11. Forecast the cost of taking on more employees.

 

Helping you stay in control of your cash flow

Book some time with the Kindred.Co team to talk through your cash flow challenges. We’ll help you get forensic with your forecasting and look for opportunities to boost revenue and cut costs.

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