{"id":8525,"date":"2020-12-30T10:00:07","date_gmt":"2020-12-30T10:00:07","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=8525"},"modified":"2026-01-29T09:59:50","modified_gmt":"2026-01-29T09:59:50","slug":"cash-flow-forecasting-sid-moore","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/cash-flow-forecasting-sid-moore\/","title":{"rendered":"‘Cash flow and forecasting are critical’ – financial advice for entrepreneurs from accountant Sid Moore"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\t‘Cash flow and forecasting are critical’ – financial advice for entrepreneurs from accountant Sid Moore\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tSid Moore<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

When writing a financial business plan, it\u2019s the questions around income and sales that are, understandably, the most exciting. <\/em><\/p>\n\n\n\n

How can I pay myself? How much will I potentially make? <\/em><\/p>\n\n\n\n

This is what drives a good idea, the belief that it is profitable. <\/em><\/p>\n\n\n\n

As<\/em> the founder and principal accountant at Moore Accountancy<\/a>, based in South Manchester, Sudipta \u2018Sid\u2019 Moore has worked with entrepreneurs at every stage of their startup journey to drive growth.<\/em><\/p>\n\n\n\n

However, she says it\u2019s important to be realistic, and that these traditional milestones that entrepreneurs dream of will only be realised if the hard work of realistic forecasting and budgeting is done first.  <\/em><\/p>\n\n\n\n

To help, we talked to Moore about the key stages of financing for both nascent and established startups, including finding an accountant, cash flow and forecasting, and raising investment, in order to achieve long term and sustainable success that is even more fulfilling than your first pay cheque.<\/em><\/p>\n\n\n\n

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Download your free small business toolkit: a guide, business plan template and cash flow forecast template so you can boss your business<\/a><\/div>\n<\/div>\n\n\n\n

First things first, when should an entrepreneur hire an accountant?<\/strong><\/h2>\n\n\n\n

Hiring an accountant<\/a> in the beginning stages can be beneficial because you get advice on the best business structure to set up (such as limited liability or sole trade<\/a>r) and best practices for keeping record.<\/p>\n\n\n\n

Trust me, it\u2019s often too late if you wait until after the first year of trading has passed.<\/p>\n\n\n\n

What business figures should small businesses track to know if the business is doing well?<\/strong><\/h2>\n\n\n\n

As the saying goes, \u2018turnover is vanity, profit is sanity, but cash is king for your business\u2019.<\/p>\n\n\n\n

That means while sales are important for growing your business<\/a>, knowing your profit margin is even more critical.<\/p>\n\n\n\n

Since products and services vary with each business, there is also all kinds of advice here that may not be applicable for every business.<\/p>\n\n\n\n

However, your profit margin is what will determine how much you will owe in taxes.<\/p>\n\n\n\n

Cash flow<\/a> and forecasting when your cash is coming in and out is critical, as is keeping a close eye on your expenses<\/a>.<\/p>\n\n\n\n

Many entrepreneurs must raise funds before they can put their business plan into practice. How should they finance it?<\/strong><\/h2>\n\n\n\n

I suggest looking into a business loan if you want to retain control of your business and you\u2019ve done a forecast that shows you will be able to promptly repay.<\/p>\n\n\n\n

Funding with a business loan is more predictable. For example, a high-street bank is mostly interested in your ability to build enough revenue to repay the loan according to its terms.<\/p>\n\n\n\n

The bank may also ask you to put up personal assets such as your home as collateral.<\/p>\n\n\n\n

In order to attract that active investor, what must a startup demonstrate in terms of its finances?<\/strong><\/h2>\n\n\n\n

To attract an investor<\/a>, typically a business needs to be established in that there is evidence of profit and income.<\/p>\n\n\n\n

Startups in the very early stages might not yet be at this stage. You need to be able to show a comprehensive business forecast, considering:<\/p>\n\n\n\n