How to tutorials

Cash Flow Forecast Video

Understanding cash inflows and outflows is the key to running a successful business. You can use cash flow to easily create a short-term forecast that predicts how and when you expect money to be received and paid out by your business. It is important for you to know that your business will have enough cash to pay creditors and expenses when they fall due.

The term cash flow is used to designate cash receipts minus cash payments over a selected period. It is an estimate of the amount of money that you expect to flow in and out of your business, and it includes all your forecasted income and expenses.

The forecast can then be used as an internal management decision-making tool that helps you plan ahead and make important strategic decisions about the operation of the business.