Cash is the lifeblood of any business. But knowing your current balance isn’t enough—smart businesses rely on cashflow forecasting to anticipate what’s ahead, make informed decisions, and confidently plan for growth.
In industries where contracts can be delayed or project-based revenue fluctuates—such as mining, construction, or equipment services—understanding your cash position isn’t just helpful; it’s critical.
What Is Cashflow Forecasting?
Cashflow forecasting is the process of estimating the flow of cash in and out of your business over a set period—weekly, monthly, or annually. It gives you a forward-looking view of your financial position and highlights potential liquidity gaps before they become major issues.
It’s more dynamic than a budget and often more practical for day-to-day financial control.
Why Does It Matter More Than Ever?
Cashflow forecasting isn’t just a “nice to have”—it’s critical for business survival, especially in today’s economic climate.
According to a CommBank survey, nearly 80% of Australian small to medium businesses (SMBs) experienced cash flow impacts in the past year. As businesses face rising costs, interest rate volatility, and global supply disruptions, maintaining visibility over liquidity has never been more important.
Furthermore, KPMG Australia reports that 72% of local companies are now using AI in their finance operations, and 62% of them say the return on investment (ROI) is meeting or exceeding expectations. This shows a growing recognition of the need to automate financial processes—especially forecasting.
Add to that a sobering fact from the Australian Bureau of Statistics: nearly 50% of small to medium businesses fail within their first three years. What’s more, the Australian Securities and Investment Commission (ASIC) lists poor cashflow as a contributing factor in 40% of business failures
As Australia recovers from recent economic slowdowns and tight credit markets, businesses—especially those in industries like mining services and equipment (METS)—must maintain cashflow discipline. Whether you’re managing payroll, paying suppliers, or navigating seasonal shifts, a forecast helps ensure you’ve got cash when it counts.
Without an accurate cashflow forecast, your business might struggle to:
- Pay employees or suppliers on time
- Take advantage of new opportunities
- Secure funding or satisfy investor confidence
- Prepare for seasonal fluctuations or market downturns
- Put simply: having a cashflow forecast in place can mean the difference between scaling up or shutting down.
Key Elements of a Cashflow Forecast
A well-prepared forecast includes:
- Opening Balance: Your available cash at the beginning of the period.
- Cash Inflows: All expected revenue sources such as sales, funding, and investment returns.
- Cash Outflows: Regular and variable expenses—payroll, rent, equipment, tax, etc.
- Net Cashflow: The difference between cash in and cash out.
- Closing Balance: The projected amount of cash at the end of the forecast period.
Choosing the Right Forecast Type
Every business has different needs depending on their size, industry, and operational complexity. Here’s a quick guide:
- Short-term (up to 3 months): Essential for managing daily operations and ensuring enough liquidity to cover immediate costs.
- Medium-term (3–12 months): Useful for tracking seasonal fluctuations, adjusting to market trends, or preparing for new product launches.
- Long-term (1–5 years): Ideal for strategic planning, capital investments, and long-term funding.
How to Create a Reliable Forecast (Without the Headache)
Many businesses still rely on spreadsheets for forecasting—risky and time-consuming. With MYOB Acumatica, forecasting becomes part of your core workflow.
Here’s how our clients do it:
- Set a clear objective. Are you planning for growth, debt reduction, or survival through slow periods?
- Pick your forecast period. Weekly for precision, monthly for big-picture planning.
- Use real-time data. MYOB Acumatica syncs sales, payables, receivables, and bank feeds so nothing slips through.
- Automate where possible. Eliminate double entry and manual errors.
- Review regularly. The economy and market change—your forecast should, too.
What Makes MYOB Acumatica Ideal for Cashflow Forecasting?
Unlike traditional accounting tools, MYOB Acumatica’s financial management module is purpose-built for businesses with complex needs:
- Real-time insights across all departments
- Automated reporting and invoicing
- Accurate cash management and reconciliation
- Intercompany accounting and consolidated views
- Forecasting tools to predict short- and long-term requirements
With the power of automation and centralised data, you gain complete visibility of your financial position—without the spreadsheet sprawl.
Ready to Take Control?
Don’t wait for a cashflow crisis to strike. A strong forecast backed by the right technology can transform the way you manage, plan, and grow your business.
Let us show you how MYOB Acumatica can make forecasting simpler and smarter.
