Cash flow forecasting helps anticipate when you’ll face cash flow deficits and surpluses in the future. This gives you the opportunity to prepare for unforeseen circumstances and make the necessary cost adjustments.
Just be careful not to overestimate future sales, and make sure you take into account the due dates of payments your business has to make. Once you have a cash flow forecast, you can compare it to your actual figures to see how accurate it is, and use your findings to make adjustments to your next forecast.
Cash flow challenges can be difficult for your business, but you can get through them with careful monitoring and management.
