Limitations and use of cash flow forecast
- Created by: march_e
- Created on: 21-05-17 18:08
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- Cash flow forecast
- DEF: Estimate of the timing and amounts of cash inflows and outflows over a specific period
- Cash flow forecast can be affected by external factors being experienced by the company, skewing the forecast
- Factors such as federal and state regulations, effects of business competition and economy wreck havoc on cash flow forecast
- always be unpredictable events and circumstances that influence the trajectory of your business
- can create the illusion that your financial future is clear and secure
- easy for a business owner to lose perspective when preparing a cash flow statement. If business has been good, easy to assume that it will always be good
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