Question 1

What is a cashflow projection?

Accepted Answer

A cashflow projection predicts how much money will come into and flow out of your business over a set period — usually monthly, quarterly, or yearly.
It helps identify upcoming cash shortages or surpluses.

Question 2

Why are cashflow projections important?

Accepted Answer

They help you make informed decisions on spending, budgeting, investing, and financing.
Cashflow projections prevent unexpected deficits and support strategic planning.

Question 3

How do you prepare accurate cashflow projections?

Accepted Answer

We analyze historical data, financial statements, expected sales, operating costs, and seasonal trends to create realistic forecasts.

Question 4

Do startups need cashflow projections?

Accepted Answer

Yes. Startups rely heavily on projections for investor decisions, loan approvals, budgeting, and planning growth strategies.

Question 5

What information is needed for a cashflow projection?

Accepted Answer

• Sales forecasts
 • Expenses
 • Loan repayments
 • Payroll
 • Tax obligations
 • Supplier payments
 • Planned investments

The more accurate the data, the better the projection.

Question 6

How far ahead can a cashflow projection look?

Accepted Answer

Projections can cover:
 • 12 months
 • 3–5 years (for long-term planning)

Long-term projections are common for funding and expansion.

Question 7

Can cashflow projections be adjusted?

Accepted Answer

Yes. Projections should be updated regularly to reflect new information or market changes.

Question 8

How do cashflow projections help with loans or funding?

Accepted Answer

Lenders and investors use cashflow forecasts to assess whether your business can repay debt and sustain operations.
Strong projections increase your chances of approval.

Question 9

Can projections identify financial problems early?

Accepted Answer

Yes — they reveal upcoming cash shortages, allowing you to plan ahead and avoid crisis situations.

Question 10

Do seasonal businesses benefit from cashflow projections?

Accepted Answer

Yes. Seasonal businesses rely heavily on projections to plan for high and low revenue periods.

Question 11

Can cashflow projections prevent overspending?

Accepted Answer

Absolutely. Projections highlight future obligations so you avoid making decisions that strain cash resources.

Question 12

Do projections help with tax planning?

Accepted Answer

Yes — by forecasting provisional tax payments, PAYE, VAT obligations, and other tax expenses.

Question 13

How often should projections be updated?

Accepted Answer

Weekly, monthly or quarterly updates are recommended for accuracy.

Question 14

Are projections only for large businesses?

Accepted Answer

No — small businesses benefit even more because cashflow issues are more damaging at smaller scales.

Question 15

What is the difference between cashflow and profit?

Accepted Answer

Profit is an accounting figure, while cashflow measures real money movement.
A profitable business can still run out of cash without proper planning.

Question 16

Can cashflow projections be used for budgeting?

Accepted Answer

Yes — budgeting and cashflow forecasting work together to create a realistic financial plan.

Question 17

Do projections include tax compliance costs?

Accepted Answer

Yes — we include SARS payments such as VAT, PAYE, SDL, and provisional tax.

Question 18

Can cashflow projections improve financial decision-making?

Accepted Answer

Yes — knowing your future cash position helps you choose the right time to invest, hire, or expand.

Question 19

Do you provide scenario-based cashflow projections?

Accepted Answer

Yes — including best-case, worst-case, and normal operating scenarios.

Question 20

How long does it take to prepare a projection?

Accepted Answer

Normally 2–7 working days, depending on complexity and available data.

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