How do I forecast cashflow?
The first step in maintaining positive cash flow in your business is to forecast sales revenue. This involves estimating how many units you expect to sell and translating this into dollars. If your business sells part of its turnover on credit, you need to account for this in the periods you expect to collect the money; this will depend on how reliable your debt collection procedures are. Once you have established how much money is coming into the business, you need to make estimates of the expenses. The more accurate these projections are the easier it will be to plan for business growth.
