Using Cash Flow Forecasting

Using Cash Flow Forecasting Interpretation of a simple cash flow forecast. Suggest causes of surpluses and deficits for businesses. Calculations based on changes in the cash flow variable.

Cash flow is the sum of cash inflows to the organisation minus the sum of cash outflows over a specific period.

Inflows can arise from cash sales, debtors paying up, interest received or disposal of assets.

Outflows can be caused by cash purchases, paying creditors or asset purchases.

The importance of cash flow - look here:

Benefits of cash flow forecasting:

Problems with cash flow forecasting:

Advantages / disadvantages of cash flow forecasting. Details here.