2 min read
Definition
A cash flow forecast is a projection of expected receipts and payments over a future period, revealing the anticipated cash balance at each point and highlighting any shortfalls. It's the single most useful management tool for avoiding a cash crisis.
In plain terms
It's a map of your bank balance for the months ahead — so a squeeze in, say, week nine shows up now, while you still have time to fix it.
Why it matters for your company
Forecasting turns cash management from reactive to planned, and arms you to arrange funding before you need it. See how to forecast cash flow.
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