What is meant by Cash Flow forecast?


As explained in the question above, cash moves into and out of the business at various times. A Cash Flow Forecast is a report that lays out when cash will come into and out of the business.

Effectively you are forecasting what will be your bank balance at any given time in the future. It helps you to see the ‘peaks and troughs’ in your cash position, so you can fix the troughs before they occur.