Cash Flow Forecasting and Budgeting for UK Businesses
Most businesses do not run out of profit. They run out of cash. The work was profitable on paper, the year-end accounts looked fine, but the VAT bill landed in the same month as the payroll run and the supplier deposit, and the bank balance hit zero on a Tuesday.
We stop that happening.
NDCA prepares rolling cash flow forecasts and annual budgets for UK limited companies, sole traders, landlords and partnerships. We are ACCA-regulated, work primarily on Xero, and charge a fixed monthly fee so the forecast is updated every period without an extra invoice landing each time you need it.
Contact us today for a free consultation to walk through your situation.
What our cash flow and budgeting service covers
A dedicated accountant builds and maintains your forecast and budget. That includes:
- 12-month rolling cash flow forecast, updated monthly with actuals
- Annual budget for revenue, costs, gross margin and profit
- Variance analysis comparing actual results against budget every period
- Short-term cash position with a six- to twelve-week visibility window
- Scenario modelling for hires, capital purchases, price changes, or major contracts
- VAT, corporation tax, self assessment and PAYE liability scheduling on the forecast
- Director’s drawings and dividend timing modelled against profit and cash
- Loan and finance repayment scheduling
- Quarterly forecast review call to walk through assumptions and changes
- Lender-ready forecast packs for finance applications
If you also need bookkeeping, payroll, VAT or management accounts, we handle all of it under one fee. The forecast pulls from the same data, so it stays current.
How NDCA works
Three things make our cash flow and budgeting service different.
- Fixed monthly fee
Forecasts and budgets are not billed per report. They are built into the fixed monthly fee we agreed when you joined. Updated every period, predictable cost. - A real human, fast
A named accountant prepares your forecast and walks you through it. No ticket queue. Most queries get a same-day reply, and the quarterly review is a real conversation about what to change — not a dispatched spreadsheet. - Built on real numbers, not optimistic ones
Forecasts that bear no resemblance to actual results are worse than no forecast at all. We build the budget from your real run-rate, test it against the previous twelve months, and review variances every period so the model stays connected to the business as it actually runs.
Xero is the only platform we use
Xero is the only bookkeeping platform we run. For cash flow forecasting, that matters.
Live bank feeds and real-time bookkeeping mean the forecast starts from a cash position that is current to the previous day, not weeks behind. Actuals flow into the model automatically as each month closes. Variances are visible the day after period-end, not three weeks later.
If you are not yet on Xero, we migrate you across as part of onboarding. If you are already there, we plug straight in.
Apron for invoice capture
Cash flow models depend on knowing what is owed and when. A supplier invoice that arrives a month late and a payment that is already due both distort the forecast.
We use Apron to keep payable data current. Forward supplier invoices to your dedicated Apron email address, and the supplier, date, amount, VAT and line items are pulled out automatically and pushed into Xero. The forecast picks up the liability as soon as the invoice lands, not when someone remembers to enter it.
For our clients, that means a forecast that reflects every commitment, not just the ones already paid.
Who we work with
NDCA cash flow and budgeting clients fall into a few groups:
- Limited companies preparing for hires, capital purchases, or expansion
- Owner-managers planning dividend timing against tax and cash
- Property landlords with portfolios balancing rent, mortgage and capital spend
- Trades and construction firms managing project cash and stage payments
- E-commerce sellers with seasonal cash swings and inventory cycles
- Service businesses planning around retainer renewals or contract end dates
- Anyone applying for finance, an overdraft, a mortgage or investment
If your situation is not on the list, send us a message — it almost certainly fits.
Worried about running out of cash?
Profit is a number on a report. Cash is what pays the bills. A rolling forecast tells you where you'll be in 30, 60, 90 days. Send us your details — we'll come back within one working day with a fixed monthly quote.
Reviews
Discover why businesses trust us for dependable accounting services and practical financial advice.
Switching from another accountant
If you already have an accountant and you have never been given a forecast, switching is simpler than people think. We send your current accountant a professional clearance letter, collect your records, and pick up where they left off. Most clients are fully on-boarded within two weeks.
You do not need to wait for year-end. You do not need an awkward phone call. We handle it.
Cash flow and budgeting FAQs
NDCA fees depend on the complexity of your business, the frequency of updates, and what else is bundled in (bookkeeping, management accounts, payroll, year-end). You get a fixed monthly price upfront, not a per-report invoice. Get a quote on 01903 968618.
A budget is a target for the year — what revenue, costs and profit you are aiming for. A cash flow forecast is a projection of money in and money out, week by week or month by month, including VAT, tax, payroll and finance payments. The budget tells you whether the year will be profitable. The forecast tells you whether you will have the cash to fund it.
Twelve months as a rolling horizon for most businesses. Some need a shorter window — six to twelve weeks at high detail — for live cash management. We build both and update them every period.
Profitable businesses run out of cash more often than people expect. Profit is calculated when invoices are raised; cash arrives when customers pay. The gap between the two can be months, and it widens fast when a business is growing. Profit on paper does not pay the VAT bill.
Yes. We prepare lender-ready and investor-ready forecast packs in formats they expect to see, with supporting assumptions, variance commentary and scenarios. Clean forecasts speed up loan, mortgage, overdraft and investment decisions.
Scenario modelling means running the forecast under different assumptions — what happens if revenue drops by 10%, if you take on two new staff, if a major customer leaves, if you delay a capital purchase. We model the alternatives before you make the decision, so the choice is informed.
For most clients, monthly. Actuals flow in from Xero, assumptions get reviewed, and the next twelve months are re-projected. Higher-frequency businesses sometimes get a weekly cash position update on top.
Yes. VAT, corporation tax, self assessment and PAYE are scheduled on the forecast as they accrue, so the cash impact is visible months before payment is due. This is one of the single biggest reasons we recommend forecasting to clients — surprise tax bills are almost always the result of not modelling them.
Forecasts are built from Xero data and maintained in tools that connect directly to your Xero file. Actuals update automatically as the month closes, so the forecast never goes out of date.
Yes. NDCA is regulated by the ACCA (Association of Chartered Certified Accountants).
We are remote first. We work with clients across the UK using Xero, so location does not matter.
Yes. Book one on 01903 968618 or via the contact form.
The accuracy depends on three things: how current the underlying bookkeeping is, how realistic the assumptions are, and how often the forecast is updated. A forecast built on stale data with optimistic assumptions, updated once a year, is worth roughly nothing. A forecast built on live Xero data, updated monthly with actuals, and stress-tested against scenarios is worth its weight. Ours are the second kind.
Before you need it. Most clients come to us after a near-miss — a tax bill they didn't see coming, an investment they couldn't move on, a quiet quarter that nearly cleared the bank. The honest answer: if your business is anything more than a side income, you should already have one running. The earlier you set it up, the more useful it becomes.
Yes. We build forecast packs designed to be shared with banks, asset finance companies, lenders and investors. Typical pack: 12-month month-by-month projections, stress scenarios, sensitivity analysis, written commentary, and the underlying assumptions documented. We can also support you on the application call if you want a finance professional on the line.
Ready to know where the cash is going?
A rolling forecast shows you the next 12 months on a single page. You see the squeeze before it lands, not after. Send us a few details — we'll come back within one working day with a fixed monthly quote.
