Business – 5.3 Forecasting and managing cash flows – Cash flow forecasts | e-Consult
5.3 Forecasting and managing cash flows – Cash flow forecasts (1 questions)
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A cash flow forecast is a projection of the amounts of cash that a business expects to receive and pay out over a specific future period, usually presented on a weekly, monthly or quarterly basis.
The primary purpose is to ensure that the business can meet its short‑term financial obligations, avoid cash shortages, and plan for surplus cash that can be invested or used to reduce debt.