QuickBooks Online is a convenient, user-friendly and effective accounting tool for businesses. While the solution has many advantages and features, there’s one area where it could use some improvement: forecasting.
Fortunately, you can use a QuickBooks online forecasting tool like Cash Flow Frog to create accurate forecasts in seconds. Let’s take a closer look at how it all works.
A cash flow forecast is an estimate of the cash coming into and out of a business during a certain period of time.
Forecasting helps businesses plan for the future, avoid cash shortages and put cash surpluses to good use.
If a business sees that it may run out of cash in the near future, it can take steps now to raise funds or increase sales to avoid shortages.
Cash flow forecasts typically contain several components, including:
The time period covered by a cash flow forecast can vary greatly, but 13-week forecasts are common.
There are a few different types of cash flow forecasts:
Most businesses collect forecasts on a weekly or monthly basis, and they may be either fixed or rolling.
If you’re using QuickBooks, you’ll find that the platform does have its own forecasting tool. Using the QuickBooks online forecasting tool will make it even easier and quicker to create forecasts, although it’s not a perfect solution.
The QuickBooks online forecasting tool is an online tool that uses your QuickBooks data to create cash flow forecasts.
Using your QuickBooks data allows forecasts to be more accurate and reliable. It also automates the process to save businesses time and money.
Using the best cash flow forecasting tool for QuickBooks can benefit businesses in many ways, but it’s important to know how to use the tool properly.
Creating a QuickBooks Online cash flow forecast is a simple and straightforward process. QuickBooks calls this tool the “cash flow planner.”
The cash flow planner allows you to forecast money coming into and out of your business, allowing you to keep an eye on your cash flow at any given period.
Adding Income Sources
To add items for income and expenses:
If you want to edit or delete items, you can do so by navigating back to the planner and choosing the item to edit it.
You can also customize your cash planner by choosing your preferences, which can include:
There are two methods for managing cash flow using the QuickBooks online forecasting tool: direct and indirect.
The direct cash flow method is ideal for short-term liquidity management. This method helps show cash movements at specific points in time.
Direct cash forecasting uses upcoming payments and receipts to create forecasts. This data is aggregated to the period of time covered by the forecast.
This method of forecasting can be used to cover periods of up to a year or more.
With the indirect cash flow forecasting method, data from balance sheets and income statements are used. This method is typically used as part of the planning and budget processes.
The cash flow tool from QuickBooks Online can be helpful and convenient. But should you really rely on QuickBooks Online forecasting?
QuickBooks Online has many great features and is a robust accounting tool for businesses. However, it is not without its flaws.
If you really want to manage your cash flow, create reliable and detailed forecasts, make projects and create what-if scenarios, you need something more than just the standard QuickBooks Online tool.
The good news is that QuickBooks Online can integrate with many third-party cash flow tools like Cash Flow Frog to make forecasting easier, quicker and more robust.
Cash Flow Frog expands the functionality of QuickBooks Online, allowing you to take better control of your cash flow management.
From creating a QuickBooks cash flow statement to forecasts, projections and more, Cash Flow Frog and QuickBooks Online make it easy to keep your cash flow in check.
Together, these two tools allow you to manage virtually every aspect of your business’s finances – and they do it all automatically to save you time. Minimal hands-on time means that you can focus on running your business and spending less time on administrative tasks.
With our QuickBooks Online simple cash flow forecasting tool, you get a wealth of features, including:
Cash Flow Frog is a complete cash flow management and forecasting tool that easily integrates with your QuickBooks Online account. Using data from your accounting software, you can create accurate forecasts and projections in seconds.
You may be interested:
February 9, 2024
Optimizing Financial Stability: Navigating the Ins and Outs of the 13-Week Cash Flow with Cash Flow Frog