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Xero project cash flow software

Spreadsheet vs cash flow software for project cash flow projections

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I'm looking for some advice as I want to track (very closely) the cash flow on a number of grant funded projects for a new tech start up.  I've looked at the Xero website and the add ons available but I wondered if anyone had any experience of using any of the software on a number of projects and could recommend which would be best?  I'm nervous of using spreadsheets for this but as there is not a lot of trading history for the software to use for the forecasting and as we need to manage this so closely I'm starting to wonder if this would be best.

Any advice would be gratefully received!


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By D V Fields
16th Nov 2021 20:18

I would be more nervous at the thought of using Xero. Do you require a true cash basis analysis? If so you may find the spreadsheet option far more flexible and ultimately more informative. A lot depends whether you feel you can create a robust spreadsheet for the needs.
Good luck

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By Andy556
16th Nov 2021 21:20

I'd recommend spreadsheet too but spend time perfecting it.

I've used a few cashflow forecast software add-ons in the past and they all have flaws. Getting them correct is time consuming even though they advertise they aren't, and some just don't work at all.

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By ireallyshouldknowthisbut
17th Nov 2021 14:08

if you are forecasting then it requires brain work and an excellent understanding of the business, and a big slice of luck. Software cant do that for you.

NB I have always found cashflows fairly useless
Much more useful has been breakeven and critical path analysis and cash cycle reviews as these will identify the critical elements of the business to build it well and cash positive as opposed to make up some stuff about the cash receipts in 2 years time which is clearly a nonsense.

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Replying to ireallyshouldknowthisbut:
paddle steamer
17th Nov 2021 15:32

Depends on the business, I was knocking out updated cashflows to banks virtually monthly from 2010, the income side re rentals received was one of the more accurate parts of the forecasts I submitted. (Though timing property sales was trickier, luckily we sold the 60 units faster than we expected)

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By johnt27
17th Nov 2021 15:22

How are you tracking the various grant funded projects in Xero? Using tracking or Projects or nothing?

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By SBS33
18th Nov 2021 09:33

I've always used Excel for cash flow forecasting, including for projects with a high volume of activity. I have looked at software solutions and they just aren't flexible enough.

As some said earlier, take time to get it right and think it through and you should end up with a template you can adapt for future use as well.

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