Cash Flow Forecasting

Cash flow forecasting is the process of predicting how much money will flow in and out of a business over a specific period, usually monthly or quarterly. It helps businesses plan for upcoming expenses and identify potential cash shortages or surpluses. By estimating future income from sales and upcoming costs like bills or salaries, forecasts guide financial decision-making. This ensures that a business can meet its obligations, invest wisely, and maintain financial health. Accurate cash flow forecasting is essential for effective budgeting and achieving overall business stability and growth.