Cash flow forecasting

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  • Created by: LivStorm
  • Created on: 15-06-21 16:23
Cash flow forecast definition
A month by month prediction of the timings of expected cash inflows, outflows and balances for the business.
It can be a positive or negative cash flow
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Opening balance formula
previous month's closing balance
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Total cash inflows definition
money coming into the business
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Total cash outflows definition
money leaving the business
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Net cash flow formula
inflows - outflows
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Closing balance formula
opening balance + net cash flow
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Uses and limitations of a cash flow forecast
Careful management is important
Vital when pursuing investment opportunities
Warning of future problems
Business requires extra finance
Useful way to look at scenarios
Figures can be compared to forecast's figures
Shows where problems have occurred
Sugges
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Other cards in this set

Card 2

Front

Opening balance formula

Back

previous month's closing balance

Card 3

Front

Total cash inflows definition

Back

Preview of the front of card 3

Card 4

Front

Total cash outflows definition

Back

Preview of the front of card 4

Card 5

Front

Net cash flow formula

Back

Preview of the front of card 5
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