Cashflow

• Purpose of cash flow forecasting

  The main purpose of the cashflow is to estimate the loan repayment capacity of the business, and to determine the level of seasonal finance required to operate
• You can use cashflow forecasts to ...

  -avoid financial trouble

  -meet your tax obligations

  -plan asset purchases

  -plan for future cash shortcomings that may impact on your ability to carry out normal or planned activities

  -plan for growth or expansion or development/reinvestment

  -make informed operating decisions

  -build your case for investment

  -forecast the cost of taking on more employees