FreeAgent has launched a new feature to help customers stay on top of their business cashflow.
The new functionality uses data from FreeAgent accounts - including invoices, bills, salary and upcoming tax liabilities - to automatically build a near-term cashflow forecast and proactively warn users about any financial issues that may be on the horizon.
Cashflow issues can have devastating impacts on SMEs, with Hiscox finding that unaddressed problems relating to cashflow are the top reason for business failing within the first 18 months of trading. For small businesses, the ability to have clear visibility on their financial health and near-term projected cash flow is vital if they are to plan more strategically - especially during the current, challenging economic conditions.
As well as forecasting how customers’ bank balances might fare over the next 90 days, FreeAgent’s cashflow feature will also alert users when it appears their finances could dip below zero. This enables business owners to plan ahead and take early action if needed.
Ed Molyneux, CEO and co-founder of FreeAgent said,
“Small businesses don’t always have the luxury of very stable income streams or large amounts of savings available to use when there is an emergency. So it’s vital that they are able to effectively monitor their cashflow and deal with problems as quickly as possible.
“With many SMEs juggling the impacts of COVID-19, the challenge of maintaining a healthy cashflow is more prominent than ever and many small businesses desperately need help with managing their short-term finances. Service providers such as FreeAgent therefore have a responsibility to step up with relevant solutions that can alleviate some of this pressure and help small businesses through these challenging times.
“We hope our new feature will help do all the heavy lifting associated with cash flow projection, which in turn will help our customers be better informed about how to keep their finances in good health. And it’s all part of our wider strategy of providing business owners with the tools to be proactive - not just reactive - about their business finances.”