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Finance
Cash Flow Forecasting
Predicting how much cash will come in and go out of a business over the coming weeks and months.
Cash flow forecasting is more important than profit forecasting for small and growing businesses. It helps managers decide when to delay spending, chase payments, or raise money. Good forecasts are updated regularly as reality changes.
It's looking at your bank account's future weather forecast so you don't get caught in a storm without an umbrella.
Real world: A seasonal online shop forecasts low cash in January and February after Christmas. They arrange a short-term loan in advance instead of panicking when bills arrive.
💡 Cash flow forecasts stop profitable businesses from accidentally going bust.