All you need to know: Cash flow forecasting in general practice

27th August 2015

All you need to know: Cash flow forecasting in general practice


Preparing a cash flow forecast for the next 12 months can be a little daunting given the recent changes to global sum funding and enhanced service payments. But a good cash flow forecast enables a practice to identify a potential drop in income or areas where expenditure could be reduced.

A cash flow forecast should be updated on a regular basis i.e. every month, to show the actual income and expenditure incurred. Forecasted figures can then be realistically predicted for the practice given recent events.

A good place to start would be with the practice’s most recent annual accounts. The income and expenditure account can help identify the various headings relevant to your practice. Then based on quarterly claims expected to be made over the next 12 months, you can begin inputting data into your cash flow forecast.

Remember to consider any known changes to income streams or practice expenditure e.g. enhanced services that have ceased or increased locum costs due to covering for a retired partner.

If you would like assistance with preparing a cash flow forecast for the first time or to enhance your current cash flow forecast, please contact our Healthcare Team on 01273 701200 or and we will be happy to assist you.


Author: Carina Ngwira, Assistant Manager and member of the Healthcare team

Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. 

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