Now, you can see the future forecasts of your business within seconds by utilizing the QuickBooks Online Forecasting Tool. It helps analyze the cash inflows and outflows of the company and get a better understanding of current and future cash flow situations. Moreover, you may also generate the cash flow reports and prepare plans for dealing with future crisis in a better way.
Follow this post to dive into the proper understanding about what QuickBooks Online Forecasting tool and how to utilize it.
Do you find the process of running QuickBooks Online Forecasting Tool a little tricky? Call us on our Helpline @ +1-855-603-0490 anytime and get instant help from our experts to fix your problem.
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Merits of Utilizing QuickBooks Online Forecasting Tool
The users can utilize the QuickBooks Online Forecasting Tool for budget management and forecasting in a secure manner. Apart from this, there are numerous other benefits of using this tool, which are as follows.
- You can easily analyze the upcoming risks in your company and make strategies to deal with them in advance.
- Moreover, using the QuickBooks Online Forecasting tool, you can estimate your incoming revenue within a certain period.
- Also, it helps you to make a correct prediction about the future while analyzing your current and projected cash flow.
Different Methods to Monitor Cash Flow Forecasting in QuickBooks
Here, we have listed different methods to examine QuickBooks Forecast Budget Report. Go through the methods given below attentively.
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1. Direct Cash Flow Forecasting:- This method is adopted to figure out the liquidity management for the short term. It reflects your company’s cash flow at specified dates in the future. Moreover, with the help of this method, you can run the forecast by adding payments occurring at certain times of the year. Then, merge it within a time frame that mustn’t exceed more than 90 days.
2. Indirect Cash Flow Forecasting:- You can use this method at the early stage of the financial year, which is the end of the last fiscal year. It comprises a number of accounting reports, such as balance sheets, and income statements to project the cash flow.
Stepwise Instructions to Utilize QuickBooks Online Forecasting Tool
Below, we have mentioned the stepwise instructions to utilize the QuickBooks Online Forecasting tool.
- Firstly, move to the Company menu and opt for the Budgeting and Planning option.
- Proceed further by tapping on the Cash Flow Projector option.
- Now, you have to add the initial cash balance. If you are unsure about it, you should compute the estimated amount for your previous month.
- After this, insert your anticipated financial inflows within the Cash Inflows area. You are supposed to mention all the income sources to acquire a clear insight into your cash flow. For this, you have to begin entering the constant income and then input any upcoming future payments for the next six weeks.
- In the column of Cash Outflows, insert the costs for your company. Make sure that monthly expenses are already included in QuickBooks. Also, you must remember to add one-time costs that occur every quarter or year.
- Next, you must review the report to verify how your company’s cash flow develops over six months. Tap on Preview when you insert data into the respective text fields to verify how the forecasts will change.
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Stepwise Instructions to Forecast In QuickBooks Online
You must utilize third-party applications or get help from your Accountant to obtain the forecast on an Excel sheet. Furthermore, you are supposed to run the Statement of Cash Flows report. Below, we have stated the stepwise instructions to forecast in QuickBooks Online.
- Launch the QuickBooks Online application and move to the Reports section from the left menu.
- After this, insert “Cash Flows” beneath the Search field section and hit the Enter key to proceed further.
- Thereafter, hit the “Statement of Cash Flows” to open the report.
- Furthermore, if you are supposed to make any changes on the settings of the report, tap on the Customize option.
- Finally, hit the Run Report to end the process.
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To Sum Up!!
We hope you have acquired all the necessary information about the QuickBooks Online Forecasting tool and how to utilize it. However, if you are still left with any queries and need help running this tool, contact our professionals for help via live chat. Alternatively, drop a message comprising your query to obtain immediate help for the query.
