Cash Flow Forecasts

Cash Flow Forecasts

Advantages

  • Allows a business to see when they might need a loan or any other type of finance
  • Able to plan for any unexpected bills/payments they may have in the future
  • If positive, the business can use a cash flow forecast to obtain a bank loan

Disadvantages

  • Only a rough estimate, not very accurate
  • Only accounts for a small portion of the year
  • May not take into account payments that will affect the business in the future

Evaluation

Cash flow forecasts are helpful to give the business a rough estimate of where they will be financially throughout the year. however, it may be a shock when an unexpected payment comes into play

Comments

Henry_H

Report

Similar Business resources:

See all Business resources »See all Cash flow forceasts resources »

Cash Flow Forecasts

Cash Flow Forecasts

Advantages

  • Allows a business to see when they might need a loan or any other type of finance
  • Able to plan for any unexpected bills/payments they may have in the future
  • If positive, the business can use a cash flow forecast to obtain a bank loan

Disadvantages

  • Only a rough estimate, not very accurate
  • Only accounts for a small portion of the year
  • May not take into account payments that will affect the business in the future

Evaluation

Cash flow forecasts are helpful to give the business a rough estimate of where they will be financially throughout the year. however, it may be a shock when an unexpected payment comes into play

Comments

Henry_H

Report