Cash Flow & FP&A Services in UAE for Clearer Financial Planning

A profit and loss statement reflects historical financial performance. The cash forecast and FP&A report reflect the future based on forecasts of receipts, disbursements, operations, and assumptions.

This support can either be structured to address your particular planning needs or a recurring monthly reporting service.

There is a difference between accounting profit and available cash since revenue could be recognized prior to actual receipt by the company, while expenses such as payroll, rent, supplier balances and others need to be paid early.

GetMyAccounting provides short-term or monthly cash forecasting in order to assist management in assessing the timing of the cash flows.

Short-Term Cash Forecasting

The forecast could include:

• Opening balance in bank and cash accounts
• Customer cash receipts expectations
• Payments to suppliers
• Payroll and other recurring payments
• Rent, loan, and contractual payments
• Capital expenditures planning
• Others identified business commitments
• Anticipated closing cash balance
• Weeks that require management’s attention

A 13-week rolling forecast may work for companies who need more frequent weekly attention. Monthly projections may be suitable where management needs a broader planning horizon.

The forecast should be prepared based on all the available information on the reporting date.

Working Capital Review

Working capital management is the analysis of the impact of accounts receivable, payable, and inventory on working capital.

Our review may cover the following:

• Customers’ outstanding accounts
• Expected date of collections
• Suppliers’ accounts and payment terms
• Holding period for inventories
• Advances from customers and suppliers
• Deposits and obligations
• Deviation from expected payment cycle

This will provide management with a systematic approach to understanding cash balances during the operating cycle.

Operating budgeting is a measurable benchmark of performance. This includes tying anticipated revenues to cost of production, payroll expenses, overhead costs, planned expenditures and performance.

Our budgeting and forecasting assistance may include:

• Revenues from products/services/geographies
• Direct and variable costs
• Payroll and headcount costs
• Rent and ongoing overhead costs
• Departmental expenditure
• Marketing expenditure
• Planned capital expenditure
• Projected margins
• Working capital requirements
• Cash flow requirements based on the plan

Upon availability of actual results, comparisons will be made against the budget.

Revised Rolling Forecast Method

The use of an annual budget will become less relevant in light of any variations in the volume of sales, prices, and requirements for the number of employees.

In the rolling forecast approach, current results and revised assumptions need to be incorporated. This would include:

• Initial planning assumption
• Performance so far
• Revised assumption
• Difference between the two
• Areas where management intervention is needed

Financial planning needs to link profit and cash together in a planning exercise. Considering only the profit could miss the timing of the customers' payment, inventory needs, investments or repayments impacting cash.

GetMyAccounting can link profit planning, balance sheet assumption and cash flow planning in one report.

Profit and Cash Combined View

Combined consideration could consist of:

• Projective income and profit
• Projected cash collection
• Non-cash expense – depreciation
• Changes in receivables and payables
• Change in inventory
• Projective cash from operations
• Profit and cash difference

It will give you two linked views: projected financial performance and cash flow.

Working Capital Adjustments

Working capital assumptions have the potential to make a material impact on cash flow projections. The relevant indicators are:

• Customer collection period
• Supplier payment period
• Inventory holding period
• Overdue customer balances
• Proposed supplier payments
• Change in the cash conversion cycle

Such indicators can be analyzed in light of the customer, supplier, and inventory information available for the business.

Capital Deployment

Proposed capital expenditures may be compared with operating cash flows and sources of financing. This will take into account:

• Timetable for purchase of equipment or assets
• Deposit and installment payments
• Internal cash available
• Proposed debt and/or owner’s contributions
• Repayment schedule
• Proposed and recorded expenditure
• Impact on proposed closing balance of cash

The extent will be decided by the available information and the objective of financial modeling.

Linkage between Three Statements

Where necessary, the planning model should provide the linkage between the income statement, balance sheet, and cash flow statement.

In respect to planning, cash flows can be evaluated using:

• Operational flows including cash collections, payment of suppliers, and payroll disbursements
• Investment flows, which include equipment purchases and asset sales
• Finance flows that comprise borrowing activities, repayment, and capital provided by the owners

The model gets updated with changes in actual results and management assumptions.

GetMyAccounting integrates the cash flow planning and FP&A services into a defined package.

The scope of work is based on the nature of the business, reporting requirements, accounting data, and management objectives.

A comparison between budget and actual results will show you why there was a change. This is variance analysis, which looks into why there has been a change.

Variance analysis may include:

• Differences in revenue due to price or quantity of sales
• Changes in gross margin
• Changes in direct costs
• Variance in payroll/number of people
• Departmental expenses
• Delayed payments from customers
• Advanced payments made to suppliers
• Performance of products/services/locations

These reporting categories may be agreed upon with management.

GetMyAccounting via Cash Flow & FP&A Services in UAE links up accounting data, cash flow projection, budgeting and management assumptions on a unified reporting cycle.

1. 1
   Analyze the Accounting Basis

   An analysis is done of the most recent profit/loss statement, balance sheet, reconciliation and schedule details to determine if there is a good accounting basis for making projections. If any gaps exist within balances, schedules and reporting, they will be determined prior to preparing the planning model. If the accounting baseline requires wider reconciliation or monthly financial reporting support before forecasting begins, businesses can review our Accounting Services UAE page for the relevant accounting scope.

2. 2
   Validate Assumptions of Management

   Management validates assumptions relating to the level of expected sales, cash collection from customers, payment to suppliers, personnel changes, expense, and expenditure.

3. 3
   Prepare the Forecast/Budget

   The forecast/budget that has been agreed upon is prepared for the chosen period.

4. 4
   Actual Results Comparison

   Comparison between actual result and budget, previous forecast/period is made.

5. 5
   Create the Management Pack

   The reporting pack will consist of cash position, forecasting, budget comparison, selected KPI, variances observed, and matters needing management input.

6. 6
   Update the Next Cycle

   Assumptions and forecasts get updated in case of changes in performance, payment dates, and operating conditions.

This service can be useful for:

• Startups that keep track of their cash runway and recurrent expenses
• Small and medium-sized enterprises that do not have an FP&A department
• Trading companies that handle inventories and credit periods
• Service firms that monitor their payroll and project margin
• E-commerce businesses checking their sales and inventories
• Hospitality firms that deal with seasonal cash flow
• Contracting firms that take care of staged collections
• Multi-unit businesses that compare their units’ performance
• Growing companies that move on to more advanced financial reporting

The format of reports depends on the business model and management needs.

Initial assessment would require the following:

• Current income and expenses statement
• Statement of financial position
• Cash balance
• Accounts receivable aging
• Accounts payable aging
• Details about payroll costs and other recurrent costs
• Any budgets prepared previously
• Sales and/or order confirmation information
• Capital expenditure budgeted
• Loans and repayments schedule
• Departmental or location based reports
• Future period management assumptions

Additional information may also have to be reconciled.

It is specialized in cash flow planning, budgeting, forecasting, variance analysis, KPI tracking and periodic management reporting. Businesses requiring ongoing finance involvement in monthly management discussions, report interpretation and coordination of financial planning across departments may also consider broader Virtual CFO support from GetMyAccounting. Businesses requiring a wider scope covering strategic financial planning, fundraising preparation, expansion modelling or board-level reporting can review our CFO Advisory Services UAE page. The CFO Advisory page explains the broader service scope, while the current page remains focused on cash flow and FP&A deliverables.

Cash flow forecasts, budgets and FP&A reports are prepared for internal planning and management review. GetMyAccounting does not control client bank accounts or authorise payments. Financing decisions, funding arrangements and final business decisions remain with management and relevant third-party providers. No future cash position, profitability or funding outcome is guaranteed.

GetMyAccounting links accounting data and future-focused financial planning through an agreed-upon reporting process. This includes:

• Agreed deliverables
• Forecasting tied to accounting data
• Assumptions confirmed by management
• Short and understandable reports
• KPIs relevant to the business
• Consistent variance categories
• Recognizing gaps in the data
• Reporting once-off or recurring

This helps provide management with a structured financial outlook for planning purposes. Business decisions still need to be validated by management and the commercial situation of the firm.

GetMyAccounting's Cash Flow & FP&A Services in UAE integrate cash forecasting, budgeting, rolling projections, working-capital management and financial performance reporting into one defined service. The management gets a structured report that is prepared based on accounting information, operational data, and certain assumptions.

Share your latest accounts, current reporting process and main planning requirement with GetMyAccounting. Our team can review the initial information and define whether the required scope involves a cash forecast, operating budget, rolling forecast, variance review or recurring management report.