What is cash flow forecasting?
A. cash flow forecasting is your most useful tool to help ensure financial solvency. With this forecast you try to predict all the funds that you will receive and disburse, and the resulting surplus or deficit. You take into account not only the operating and capital budgets, but also the ratio of cash sales to credit sales and the paying habits of your customers. To estimate cash outflow you must also consider the promptness with which you intend to pay for your materials and merchandise.
