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Thought Leadership from the Leaders in Virtual Accounting and Bookkeeping Services
21, January
2015

3 Ways to Use Revenue Forecasting to Even Your Cash Flow

Knowing when to expect money coming in and how much is going out is basic business accounting, but that doesn't always mean it's the easiest financial aspect to manage. If you deal with too many feast or famine situations with your cash flow, you can put your revenue forecasting to work.

1. Automated invoicing.

Your revenue forecasting shows information about when your client and customer payments should enter into your business cash flow. However, your forecast doesn't account for invoices that aren't sent out in an appropriate amount of time. If your clients don't receive their invoice, they may be uncertain how much they owe you for products or services. Use an automated invoicing system to take care of the problem and smooth out your cash flow when revenue forecasting says you should have plenty in reserve.

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