Financial projections are an essential management tool for businesses of all sizes helping business owners and leaders proactively monitor and evaluate business financial health and outlook while performing disaster checks.

Just as individuals should build a financial reserve (safety net or “rainy day” fund) for themselves, businesses (especially, small businesses) should do the same.

How often do you upgrade or replace aging computer equipment for your business?

A cash flow projection is another tool to help manage and monitor the financial health of your business and for fiscal year planning and budgeting. In a cash flow projection, you are projecting your potential monthly cash inflows and outflows.

Steady cash flow is vital for any business but even more so if you’re an independent small business. After all, if you don’t have a steady cash flow, you can’t pay bills, employees or even yourself!