Xero has a built-in tool to support cash flow forecasting, there are two versions available the first is included in the base package called Xero short-term cash flow, the second version is an add on to your account called Xero Analytics Plus which increases the detail of reports as well as extends the cash flow forecasting.

In order to have a more accurate forecast, everything in Xero needs to be up to date including, invoices and bookkeeping. It should be noted that this is just a forecast and should be used more as guidance rather than fact.

Xero Short-term cash flow

The Xero tool is available again for free within your Xero account under the business section. You will need to select the bank account you wish to focus on and you can pick to forecast the next 7 days or the next 30 days. This will then showcase a breakdown of your cash flow over the selected period.

Xero Analytics Plus

With Xero Analytics plus for an extra £5 a month this will allow you access to more in-depth reporting included with this will be the function to see your cash flow forecast for 60 or 90 days. This cash flow tool will work the same way as the base version but will allow you to forecast further into the future.

To find out more about Xero Analytics Plus:

• Read the article

• Contact: damion@co-accounting.co.uk