How do you prepare a Short-term Cash Flow Forecast and why is it Important?

Moolamore28 Sep, 2023Finance

Short-term cash flow forecasting is critical for managing your company's cash flow. It considers the money you have, the cash you expect to bring in, and what is expected to come out in a specific time frame. Cash flow forecasting is important because it gives you visibility into your future cash position. It shows you where cash is tight and when you need to take action to close the gap. They are also extremely important when requesting assistance from banks or investors because they become part of an investment package of information about the health of your company and future growth. Here are the five most important steps to take to ensure you're on the right track: