How Do You Do a Cash Flow Forecast?

To perform a cash flow forecast, gather historical financial data and project future revenues and expenses based on sales forecasts, payment terms, and budget allocations. Estimate cash inflows from sources like sales, investments, and loans, while accounting for expected outflows such as operating expenses, debt repayments, and capital expenditures. Regularly update the forecast, monitor actual cash flows against projections, and adjust as needed to maintain accuracy and support informed financial decision-making within the business.

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