Cashflow forecast basics

Cashflow forecast: estimated flows of cash into and out of a business each month.

The purpose of a cashflow forecast is to help businesses pinpoint when shortfalls may occour.

Problems with forecasting cashflow: estimates may be wrong and inaccurate as they could be based on market research for a new business. Also, there may be a sudden change in the economy which could affect the figures. 

Inflows:…