Cashflow / P&L Costings

[AdamEld]

Hello,

Being a fairly new business owner I wanted to get some advice - I have recently decided to use an invoice financing company to support my business in payrolling contractors. (I run a recruitment agency)
As part of this I need to produce a business plan with a full set of financials attached to it, (Cashflow forecast and a P&L forecast).

The part of the business plan that needs me to talk about the company, the vision, my background and market research ect ect I’m fine with, however the financial part I’m a little unsure about.

Firstly I’ve been told by a number of “commercial finance” professionals that I need to get my accountant to produce my financials for me however I’m not sure what I should be paying my accountant to do this for me? Any advice?

Secondly I’ve been onto Google and typed in “Cashflow forecast” and a number of very good examples come up, Could I not just work my own forecast into one of these and use them? I’ve been told that in today’s market Banks are being very strict on lending money and therefore professional forecasts are taken a lot more serious than something I’ve cooked up myself.

So basically what I’m trying to find out is A. Should I do the financials myself or get my accountant to do them? and B. If I get my accountant to do them what kind of costs should we be talking about for an accountant to produce a 12 month forecast for me (Cashflow & P&L)?

Would like to hear from accountants and business owners that have had to go through a similar situation –

Regards
Adam Eld

 

[Ronika]

Hi Adam,

Since you are probably the most knowledgeable person about your business, you should absolutely do your own cash flow and P/L forecast as long as you are comfortable with the various components of the forecast and the terminology. If you have never done one before, however, it might make sense to have a professional review it prior to submission as you don't want to an elementary error to prevent you from getting the financing.
With respect to pricing, this can vary quite a bit. You should try and get a recommendation from a fellow business owner. Alternatively, you can google an accountant in your area.
Should you need someone to quickly review your forecast, I can take a look at it. You can contact me through my website.
Some considerations when building a budget can be found here:
How to Prepare a BusinessBudget - Small Business Blog - Small Business Accounting and Financial Consulting