6 Reasons To Use Float For Cash Flow Forecasting
Here are our top six efficiency-boosting reasons for using Float…
1. Save hours every month with automatic updates
One of the most time-consuming parts of manual cash flow forecasting is bringing your spreadsheet up to date. Our users tell us this used to take them an average of eight hours every month when manually entering data into spreadsheets. If you’re still doing manual cash flow forecasting you’re wasting valuable time that you could be spending planning for growth, securing better deals or even just getting on with the general day-to-day running of your business.
That’s why businesses come to us. Float automatically imports your data every 24 hours, meaning your forecasts are always up to date. And you always get a clear view of where your business is right now.
Float user Iain McNiven, of the Isle of Skye Candle Company, says:
“I can’t even begin to estimate how many hours I spent on excel doing instantly out-of-date cash flow projections; Float has given me a lot of time back in the day to get on with my real job.”
What’s more, Float enables you to see your budget vs actuals progress throughout the month so you don’t have to wait until month-end to spot problems.
2. Collaborate with your team to create detailed forecasts
Granting your team access to your cash flow forecast means you can easily collaborate. Each department can input their cost projections and add notes on any changes that will impact cash flow. You can easily add staff, stakeholders, and advisors to Float for collaboration.
Additionally, choosing to add your accountant to your Float account can enable you to work together to identify opportunities to reinvest excess cash.
Another benefit of adding multiple users is that you won’t have multiple versions of your forecast. Your forecast lives in the cloud so any changes will be reflected in everyone’s view, meaning you can keep Float as your point of truth.
You can even export your Float data to an easy-to-understand PDF, giving you the visual impact of the graph and the numbers to back it up.
“I’m now able to easily communicate what’s going on to my business partners, I send a quarterly Float report to them and it’s so much more understandable. I don’t even have to explain it. Whereas when I would send them our Excel cash flow they’d have no idea what it was telling them.”
3. Accurate data you can trust
When it comes to running a business, the accuracy of data, as well as visibility into what’s happening in the coming weeks and months, allow you to keep control.
Float is always accurate and up to date because the information comes directly from your accounting software (Xero, Quickbooks Online or FreeAgent). Float syncs with your accounting software every 24 hours as you create, draft, pay or reconcile your bills and invoices. This gives you peace of mind knowing your forecast is not subject to human error.
Bryn Morgan of Inventid says:
“Forecasting’ has always been a low-level anxiety of mine – I had a constant feeling that was something I wasn’t capturing. Linking Float to Xero which has a real-time sync with our bank accounts made total sense. And now I’m confident that I’m seeing real data!”
4. Safely and confidently plan for your business’s future
Overwhelmingly our customers say using Float brings them the confidence to run their business and make decisions. Float takes away the burden of manual data entry with automatic updates on the status of all bills, invoices, and payments each day.
This means you don’t have to spend hours updating a dodgy spreadsheet, freeing you up to focus on your business instead. When you have confidence in your numbers you can negotiate better deals, secure better loan rates, and make data-backed business decisions. By not having a robust cash flow forecast your business could be leaving money on the table.
Mike Lander of Ensoul says:
“Float gives me huge amounts of confidence in running my business, the certainty of cash has allowed us to do better deals with suppliers, safely invest in marketing and take advantage of time-sensitive offers. The combination of Float and Xero allow me to have strong financial control over the business.”
5. Manage bills and invoices at the click of a button
Customers don’t always pay on time, that’s just part of business. This means that sometimes you will need to delay payment to a supplier as a result. To manage this, your business needs a cash flow tool that’s adaptable. Float allows you to change expected dates on bills and invoices. This helps to more accurately reflect when you are going to get paid and what your bank balance will be as a result.
Carl Benfield of Prescient Power says:
“We need to be constantly aware of anticipated payments in and out, and where our bank balance is likely to be. Our board, accountants and bank all love the Float interface which provides clarity and confidence for the future.”
6. Spot cash shortages and surpluses well in advance
As the saying goes ‘forewarned is forearmed’ and that is especially true when it comes to cash flow. When you have clear insight into your future cash position you are able to effectively plan for, and manage, any situation. Float allows you to see exactly when you have the cash to reinvest in the business, or when you have a gap that your spreadsheet would have missed.
Float is for your business present, and future. It provides an invaluable insight into the reality of your cash and your financial management systems. Intuitive, visual, and accurate, it’s the tool you need to keep on track of your cash.
Sign up for a free 14-day trial today and get your cash flow sorted.