Startup Success Series: Cashflow Forecasting

The Startup Success Series is designed to provide insight and education on the topics that matter most to the founder community right now.

Each week Startup Victoria hosts a 1-hour webinar for the community, focussing on a specific topic. There’s only so much we can squeeze into 60 minutes, so following each webinar you can access further resources in our Startup Success Series articles.

The Startup Success Series is supported by LaunchVic.

LaunchVic is Victoria’s startup development agency. LaunchVic invests in organisations and projects that empower entrepreneurs to scale innovative companies and deliver new industry benefits to the Victorian economy.

A few weeks ago, we asked the Startup Victoria community ‘what are your biggest needs right now?’. We received an influx of responses around cashflow management and extending runway to weather the COVID-19 storm.

In a time of uncertainty, cash accounting becomes more important than ever. Tracking and forecasting business performance in cash (as opposed to accrual accounting) keeps you closer to the reality of business performance in real-time. As a founder, understanding how cash moves in and out of your startup is an important decision-making tool. This applies tenfold in times of uncertainty.

This article summarises resources designed by Startup Vic Industry Partner, LUNA, to support founders in managing your cashflow.

Virtual Event Recording

About: Startup Vic CEO Judy Anderson sat down with LUNA’s Head of Financial Services Daniel Ross to discuss the difference between cash and accrual accounting; what a good cashflow forecast should look like; and why cash is an important decision-making tool for startups and founders.

Timestamps:

  • 4:02 – Daniel Ross introduction
  • 5:46 – Cashflow and accrual accounting
  • 13:38 – Setting up a forecast in a crisis
  • 23:35 – Building a runway
  • 43:56 – How frequently should you update your cashflow forecast?
  • 46:43 – Q&A

Template Cashflow Forecast

About: You can use the spreadsheet to:

  • Prepare a basic P&L forecast;
  • Generate a cashflow forecast using your P&L forecast as a base;
  • Plan different scenarios and establishing decision tripwires.

Note: You will need to either download or make a copy of the template in order to use it.

More information can be found here.

COVID-19 Stimulus Tracker

About: There are many new Government stimulus and grant programs available to support businesses during COVID-19. LUNA has created a COVID-19 Stimulus Tracker listing all the stimulus announced to date, as well as guidance for how to apply. The tracker is updated regularly as things change, so we recommend bookmarking the page in your browser and visiting weekly.

More information can be found here.

Stim-bot

About: The economic stimulus announced over the last month is not designed specifically for startups. It can be challenging to determine your eligibility for programs like the PAYG, bank loan guarantee and the JobKeeper incentives (just to name a few). To solve this problem and give you back some time, LUNA has created a ‘Stim-bot’ to help you determine your eligibility for some of the programs listed in their Stimulus Tracker. All you need to do is answer a few quick questions and they’ll email you an instant, personalised Eligibility Report.

More information can be found here.

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Further resources

The Business Victoria website has a detailed resource page on cashflow forecasting. Including:

  • Advice for how to manage your cashflow;
  • A step by step guide to creating your own cashflow forecast;
  • Free workshops and seminars on finance fundamentals.

More information can be found here.

If there are further resources and programs on this topic that may be helpful for founders, please contact us and we will update this page.