Explain two reasons why a small removals company might benefit from using a cash flow chart.

A cash flow chart can benefit a removals company in many ways. Firstly, it would help them see how many inflows and outflows they have on a month-to-month basis. This is beneficial as the company can then plan ahead for unexpected outflows of cash, such as if they needed to repair their removal vans, as they can plan to do this in the month when their cash inflows are the greatest.

Secondly, a cash flow chart would be helpful for a small company in particular, as large time periods of low income can be more difficult for a small company to deal with than a big company. For example, the removals company may have seasonal periods of large income, and other times of the year where they don't have as much. A cash flow chart will help them plan ahead for this so that they aren't left without cash in the months when their income is lower.