Cash Flow Forecast

Predicting your cash situation should be a key concern for every business since keeping track of your cash flow allows decision-makers to plan for the future, and make smarter decisions. At its most basic level, a cash flow prediction can tell you whether you'll have positive cash flow (more money coming in than going out) or negative cash flow (more money going out than coming in) at any particular moment in time.

Cash Flow projections are most typically used for one of the following purposes:

  • Planning for short-term liquidity: Keeping track of the cash available on a daily basis to guarantee that your company can meet its short-term obligations.

  • Visibility of covenants and important reporting dates: Projecting your cash levels for critical reporting periods such as the end of the year, quarter, or month.

  • Planning for growth: Ensuring that the company has enough working capital on hand to cover future revenue-generating initiatives.

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