Can You Explain The Purpose Of A Cash Flow Forecast And Also Explain The Consequences Of A Business Not Developing A Cash Flow Forecast?

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Anthony answered
A Cash Flow forecast is a short-term plan on how your business uses cash in the following areas:

It will help you plan your business, since you will plan on how cash is to be used and you will see any diffencies that may arise.

You should have a regular Cash Flow Statement prepared every month that compares actual results to forecast.

I would also prepare a budget that is a longer plan (12 months, 18 months, etc).

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