Cash Forecasting

Managing cash effectively requires cash forecasting daily, weekly, monthly and annually. The cash forecast should be developed from the cash flow budgets and broken down into various time periods. The daily forecast can be compared and verified each day by comparing the forecast against the actual transactions reported by the bank for that day. Each day the bank balance and the company general ledger balance should be reconciled and any variances investigated. Through this process you can monitor the deposit and disbursement float within the system.

  • Does your organization monitor your daily bank balances and general ledger balances daily?
  • Are the balances reconciled daily?
  • Does your organization know the number of mistakes that your banks make?
  • Does your organization monitor the fee structure of your bank?
  • Does your organization pay for bank services with compensating balances?
  • Does your bank supply you with an account analysis monthly?
  • Does your organization accurately prepare operating and cash flow budgets and compare against the actual results.

If you answered no to any of the above questions, or you are unsure about your cash and liquidity programs, Alan Neal & Associates is positioned to assist you. To learn more about how our value-added services can provide value to your organization, contact:

Alan Neal & Associates, Inc.
240 Forest Avenue Suite 202
Chattanooga, Tennessee 37405
Phone: (423) 756-4076
Fax: (423) 756-4085

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