What’s a cash flow forecast?
Cash flow forecasting helps you predict cash surpluses and deficits that are likely to occur in the course of a given planning period. So it helps you plan your borrowing or tells you how much surplus cash you will have to invest. If you take on a large project, for example, a cash flow forecast will help you make a decision about staged payments. It’s no good taking on an apparently profitable project that will be invoiced on completion if you’re not going to have enough cash available to keep the company afloat until the end of the project.
Hello, first of all a cashflow forecast is a plan that shows how much money you expect your business to receive and pay out over a set period of time. You can easily calculate future losses and future profits using such a plan. It can help you plan how much you expect to make in sales and spend in costs and to understand when money will enter and leave your bank account. It is a process that can be done using different tools developed by IT specialists and it is very helpful if you own a business.
