The Annual Forecasting bridge

The Annual Forecasting bridge

The Annual Forecasting bridge helps you position a Cashflow Forecast as an essential annual service. Cashflow planning is best practice in every business and is critical to survival and growth. The one-hour meeting to review the client's draft Cashflow Forecast ensures the Forecast is as accurate as possible, helps the client understand their Forecast, and helps you identify areas for improvement and position a Cashflow & Profit Improvement Meeting or Cashflow Management Coaching. 

Important info
A Cashflow Forecast is part of the Business Advisory Trifecta along with Business Planning and Ongoing Reporting and Accountability; these services are best practice and commonly sold together.

To access the Annual Forecasting service, navigate to Navigation panel > Bridges > Annual Forecasting bridge.

Understanding the Annual Forecasting process

Most often, a client will request a Cashflow Forecast when applying for additional finance, however, it should be positioned as an essential annual service. The Gap doesn't provide a forecasting tool; it's assumed that your firm will use software for forecasting and reporting, such as Fathom. Instead, the Annual Forecasting bridge positions a wraparound service to help you monetise the Forecast and position ongoing cashflow improvement services with your clients.
  1. The Process Guide outlines best practice use of the content in the Annual Forecasting bridge; click the Download Process Guide button in the top right-hand corner to view this guide

Note
Ensure you review the Process Guide prior to using the content in the bridge.

Marketing the Annual Forecasting service

It's likely that a client will only request a Cashflow Forecast when required by the bank, but there are many other ways to actively market the Annual Forecasting service, including:
  1. Discussing the need for a Cashflow Forecast as part of a CCR, PAM, Annual Accounts Review or Cashflow & Profit Improvement Meeting.
  2. Sending out relevant educational marketing content to your database to subtly position the value of the Cashflow Management service.
    1. Go to Navigation panel > Marketing > The Gap + BOMA  > The Gap + BOMA Content Library Catalogue to check out our education marketing content ready for you to send via BOMA
  3. Hosting a Cashflow Management or Cashflow Freedom Seminar or Webinar.

The Annual Forecasting proposals

There are three proposals in the Annual Forecasting bridge, offering either a standalone Cashflow Forecast proposal, a Forecast with Cashflow & Profit Improvement Meeting, or Cashflow Management which includes a Cashflow Forecast followed by ongoing coaching.
  1. Consider the client's unique situation and use the checkboxes to select the objectives, measures of success and value to the client; add bespoke objectives, measures of success and points of value to reflect the client's individual needs
  2. If your client does not accept within seven days, call them to follow up
For more information, see our Using proposals article.

Tip
Carefully read through the objectives, measures of success and values to better understand the types of problems this service will help solve for your clients.

Delivering the Annual Forecasting services

Client Outcomes

By undertaking Annual Forecasting, clients will:
  1. Better understand their cashflow drivers for better decision making
  2. Be able to predict and plan for large cash outflows
  3. Identify key drivers of cashflow in their business
  4. Identify ways to avoid late payment penalties and interest from suppliers
  5. Achieve peace of mind that their cashflow needs are known and properly funded

Session duration

The Cashflow Forecast Review meeting should take 60 minutes. 

The meeting

You'll draft the client's Cashflow Forecast then send the draft to the client to review along with pre-work to complete. You'll then meet with the client  to discuss and finalise the Cashflow Forecast and discuss service options to help the client improve their cashflow.

Important info
We recommend enforcing a 'no pre-work, no meeting' policy. Politely discuss the benefit of pre-work and reschedule the meeting so it does not become one of discovery.

Click here for more information about common content found in the Gap bridges and how they relate to each step in the Annual Forecasting process. See the Annual Cashflow Forecast Process Guide for detailed information about the Annual Forecasting content.

Key content in the Delivery folder includes:
  1. Cashflow Forecast Pre-work: this is a Word file to download, add your logo/branding, and update to reflect the client's business. You must attach the file to the Cashflow Forecast Confirmation and Pre-work Email. This pre-work ensures you've gathered all information required to finalise the client's Forecast.
  2. Cashflow Forecast Partner Review Checklist: this checklist ensures the Client Manager who prepares the draft Forecast reviews their own work before the Partner also conducts a review. This ensures that the Forecast has been drafted accurately and nothing has been missed.

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