How to forecast cash flow? A cash flow forecast is a financial tool used to estimate the money that will flow in and out of a business over a period of time. It helps businesses plan for future cash needs and ensure they have enough funds to meet obligations. Read our tips on cash flow management, calculation, and projection.
Even profitable and successful companies can be weakened when faced with or a customer insolvency. There is much to do to protect your business from : picking the right customers to trade with, implementing processes to ensure invoices will be paid on time, integrating in all your investment decisions, or subscribing a policy.
But it all starts with having an up-to-date cash flow statement and creating a cash flow forecast. Let’s have a look at how to calculate cash flow and how to make a cash flow projection.