Cash flow forecasting for consultancies and professional services
Invoices are large and on long terms, while payroll and the VAT bill arrive on fixed dates. Cadence shows the weeks in between, when cash is at its lowest.
Where the cash gets tight
Management and IT consulting, legal, accountancy, engineering and other professional firms
- A few large invoices make up most of the income, so one late payment matters.
- Payment terms of 30 to 60 days, or longer, mean work done now is cash in months.
- Salaries are the biggest cost and do not move.
- VAT is collected on invoices and paid to HMRC on a fixed date, whether or not the client has paid.
How Cadence helps
Overdue invoices, ranked
Overdue invoices are ranked by amount and age, each showing the statutory late payment interest and compensation you can claim.
Every plan
VAT, PAYE and corporation tax in the forecast
Cadence estimates each quarter’s VAT from your invoices and bills, and places PAYE and corporation tax from your own figures, each in the week it is due.
Every plan
Budget against actuals
Set a budget for the year and see revenue and costs against it month by month.
Every plan
A pack for your bank
A cash flow pack for your bank or lender, built from the same forecast.
Professional
Chase emails drafted for you
Sentinel drafts a payment reminder for each late payer for you to check and send, and tracks the dates customers promise to pay.
Enterprise
Between a big invoice and the VAT bill
A worked example.
- Bank balance on 20 October: £70,000. Cash buffer: £20,000.
- Payroll of £35,000 goes out on 28 October, and the VAT bill of £22,000 is due on 7 November.
- A £60,000 invoice is due on 10 November, and that client usually pays about 10 days late.
- From 7 November the balance is £13,000 (£70,000 − £35,000 − £22,000), below the buffer until the invoice is paid, which Cadence expects around 20 November. You can see this weeks ahead and chase early or plan for it.
Illustrative figures.
See your own next 13 weeks.
Connect Xero or import a spreadsheet, and the forecast builds itself. No card needed.