Also called: Cashflow forecast, Cash flow projection
Cash flow forecast
A cash flow forecast is a projection of money coming into and out of a business over a future period, usually week by week or month by month. It shows the expected bank balance at each point rather than accounting profit.
What is a cash flow forecast?
A cash flow forecast is a projection of money coming into and out of a business over a future period, usually week by week or month by month. It shows the expected bank balance at each point rather than accounting profit.
Example
A 13-week forecast shows a shortfall in week seven when a BAS payment lands before two large invoices are due.
Why it matters
It turns a vague funding request into a specific one, and lenders take a well-built forecast seriously.