What is Float? Float is an award-winning online cash management and forecasting tool that integrates seamlessly with Xero and helps you manage your business and keep on top of your cash flow.
By projecting your future cash in the bank, it’s easier to make the right decisions for your business.
So what are the benefits of using Float for your cash flow forecasting?
Float provides an accurate view of your future bank balance and Float's Xero users are currently using it to:
- Create 'scenarios' to model short and long term cash flow
- Track performance
- Set budgets
- Drill into transactions to get a granular view of incomings and outgoings
Best of all, because Float pulls real time data from Xero, it automatically updates your actuals giving you a live, rolling forecast that never goes out of date.
Here are 6 reasons why you should be using Float for your cash flow forecasting:
1. Automatic Updates Will Save You Hours
One of the most time-consuming parts of manual cash flow forecasting is bringing your spreadsheet up to date.
Float's users say this used to take them an average of eight hours every month when manually entering data into spreadsheets.
If you’re still doing manual cash flow forecasting, you’re wasting valuable time that you could be spending planning for growth, securing better deals or even just getting on with the general day-to-day running of your business.
"That’s why businesses come to us. Float automatically imports your data every 24 hours, meaning your forecasts are always up to date. And you always get a clear view of where your business is right now." - Float
Float enables you to see your budget vs. actual progress throughout the month so you don’t have to wait until month-end to spot problems.
2. Collaborate With Your Team to Create Detailed Forecasts
Granting your team access to your cash flow forecast means you can easily collaborate.
Each department can input their cost projections and add notes on any changes that will impact cash flow. You can easily add staff, stakeholders, and advisors to Float for collaboration.
Additionally, choosing to add your accountant to your Float account can enable you to work together to identify opportunities to reinvest excess cash.
Another benefit of adding multiple users is that you won’t have multiple versions of your forecast. Your forecast lives in the cloud, so any changes will be reflected in everyone’s view, meaning you can keep Float as your point of truth.
You can even export your Float data to an easy-to-understand PDF, giving you the visual impact of the graph and the numbers to back it up.
3. Accurate Data You Can Trust
When it comes to running a business, the accuracy of data, as well as visibility into what’s happening in the coming weeks and months, allows you to keep control.
Float is always accurate and up-to-date because the information comes directly from your accounting software (Xero, Quickbooks Online or FreeAgent).
Float syncs with your accounting software every 24 hours as you create, draft, pay or reconcile your bills and invoices.
This gives you peace of mind knowing your forecast is not subject to human error.
“Understanding cash flow is critical for small businesses – businesses that are quite profitable can fail because they run out of cash. Being able to see where those cash flow crunches are going to occur means the business owner can take action before there is a crisis.”
- Margaret Holmes, Engine Room Chartered Accountants
4. Safely & Confidently Plan for Your Business’s Future
Float brings its customers the confidence to run their business and make informed decisions.
Float takes away the burden of manual data entry with automatic updates on the status of all bills, invoices and payments each day. This means you don’t have to spend hours updating spreadsheets — freeing you up to focus on your business instead.
When you have confidence in your numbers you can negotiate better deals, secure better loan rates, and make data-backed business decisions.
By not having a robust cash flow forecast your business could be leaving money on the table.
5. Manage Bills & Invoices at the Click of a Button
Unfortunately, customers don’t always pay on time, that’s just part of business.
This means that sometimes you will need to delay payment to a supplier as a result. To manage this, your business needs a cash flow tool that’s adaptable.
Float allows you to change expected dates on bills and invoices. This helps to more accurately reflect when you are going to get paid and what your bank balance will be as a result.
6. Spot Cash Shortages & Surpluses Well in Advance
As the saying goes ‘forewarned is forearmed’ and that is especially true when it comes to cash flow.
When you have clear insight into your future cash position, you are able to effectively plan for, and manage, any situation.
Float allows you to see exactly when you have the cash to reinvest in the business, or when you have a gap that your spreadsheet would have missed.
Float provides an invaluable insight into the reality of your cash and your financial management systems. Intuitive, visual, and accurate, it’s the tool you need to keep on track.
At Engine Room Chartered Accountants we are experts in all things finance and we use innovative cloud-based technologies such as Xero and Float to provide all of our clients with an accurate and efficient service.
Get in touch with us via our website or give us a call on 0800 236 446 for a no obligation chat and discover what the finance professionals at Engine Room Chartered Accountants can do for you and your business!