Forecasting sales and cash flow for 2015? Use these three tips so you can plan wisely

Simangele Mzizi, Fsp Business, 06 Nov. 2014

Tags: forecasting, forecasting sales and cash flow, forecasting tips

At this time of year, most businesses forecast sales and cash flow for the upcoming year.

They do this to determine:

• What their business is going to spend for the year ahead;
• What they think they’ll bring in;
• When they think that money will actually reach their bank account; and
• How sales are going to flow and decline.

If you’re one of the many businesses who are going through this all important exercise, here are three tips we recommend you use so you can plan wisely for 2015.

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Here are three tips you can use when it comes to your sales and cash flow forecast for 2015

According to, forecasting for sales and cash flow is never simple and the shaky economic recovery makes attempting to create an accurate forecast even more perplexing.
But, this doesn’t mean it’s impossible to forecast effectively. Here are the three tips the site recommends you use:
Tip 1: Look for patterns in the growth rate
Carefully look at the month-to-month growth rate in the previous year to predict revenue in the coming months. Since sales tend to follow a seasonal pattern, you’ll be able to see when customers are more likely to spend their money.
Tip 2: Tighten your credit terms
2014 has been a tough year economically and it’s likely that 2015 will be tough as well. This means some of your customers may struggle to make payments. You must take this into account and tighten your credit terms to your customers so you don’t face a cash flow crisis. You should also use this knowledge to be more conservative in your forecast.
Tip 3: Know thyself and thy customers
The secret of a good cash forecast, according to is knowing your business: Knowing your customers’ payment habits and your own.
The better you know your own business and your customers, the more accurate the forecast will be.
These forecasting tips will help you budget and plan wisely for the year ahead.
And remember if you need an effective method to do your forecast, use Excel. If you’re not familiar with Excel or don’t know how to navigate through it, check out the Excel Training DVD 2014: Solutions to Your 35 Biggest Excel Finance Problems.

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