A cash flow forecast typically includes projected inflows and outflows of cash over a specified period, encompassing various revenue sources and expenses. Inflows may comprise sales revenue, loans, investments, and other income streams, while outflows encompass operating expenses, loan repayments, taxes, and capital expenditures.
Additionally, it may incorporate factors like accounts receivable, accounts payable, and inventory management to accurately predict cash availability and ensure sufficient liquidity for ongoing operations and financial obligations. Regular updates and analysis of the forecast help businesses adapt to changing circumstances and maintain financial stability.
