cash flow forecasts

• •A cash flow forecast is the day-to-day running of a business budget
• Cash inflow one the money recived from the business such as products sales
• Cash outflow are the sums of money paid out by a business such as raw materials and wages
• Day to day spending is working capital
• When customers buy a product the business may not get the money straight away due to the customer having the product in credit meaning that they can play later
• Established firms can base forecasts on past experience where’s new business cAnt
• Managers use cash flow to make sure that they always have enough money to pay suppliers and employees
• Cash flows can be included in business plans
• Not always accurate and need a lot of experience and research in it as well
• Cash flows are hard to predict in a dynamic market
• A inaccurate forecasts can lead to the business running it if money and ending up insolvent ( can’t pay there debts) leading to the business closing down