Cash Forecasting for AR and AP Cash Flows

Cash forecasting for AR (Accounts Receivable) and AP (Accounts Payable) cash flows is a financial practice that involves predicting the timing and amount of cash inflows and outflows related to customer payments and vendor disbursements. It helps businesses optimize their cash management by providing insights into future liquidity, enabling proactive decision-making for better financial stability. This process ensures efficient working capital management and minimizes the risk of cash shortages or surpluses.