A Chartered Financial Planner who built his own cashflow modelling software, which now has 4,000 users, says cashflow modelling is not essential to Financial Planning.

Ray Adams launched CashCalc in 2014 after being disappointed with the other options for cashflow plans in the market.

But, surprisingly, he told Financial Planning Today magazine that he was among the 22% who voted in our recent poll that cashflow modelling is not essential.

Mr Adams, who is also director of Niche IFA in Wales, said: “As a Chartered Financial Planner who has developed my very own cash flow modelling tool, CashCalc, you’d expect me to say that cash flow modelling is essential to financial planning. But in fact I agree that it is not essential.”

Related: Read Financial Planning Today magazine issue 3 feature on the cashflow modelling debate here

He said: “Yes, cash flow modelling is hugely beneficial to the advisory process, but there are many IFAs doing a very good job without the need for a cash flow plan.

“Making such a blanket comment gives the impression that if you do not conduct cash flow modelling you are letting the client down – which is not necessarily so.

“The application of cash flow modelling is dependent on many factors, including the type of business you do and the type of client you are servicing. So if you do not require a cash flow plan, then I do not believe it to be essential.”

Mr Adams stated that there are over 4,000 registered users of CashCalc – he estimated that was 20% of all CF30’s in the UK.

He said: “My company specialises in pensions and retirement, so cash flow modelling is a hugely beneficial tool. Not only does it act as a foundation from which we can provide appropriate advice, but also it has the added benefit of mapping out the client’s finances for them in a way, which is simple and intuitive.

“The addition of cash flow modelling has revolutionised our advisory process and the value clients place on a cash flow plan alone has made it indispensable. For example, we have been able to help clients retire early simply based on a cash flow plan.

“A comprehensive cash flow plan can take less than 30 minutes to make. And by putting their cash flow forecast up on a big screen and interacting with it, you can completely change a client’s outlook – leading them to make life changing decisions for the better.”