Creating a cash flow forecast involves several key steps:
Identify Cash Inflows: List all expected revenue streams, including sales, loans, and investments. Identify Cash Outflows: List all anticipated expenses, such as rent, salaries, and utilities. Estimate Timing: Determine when these cash flows are expected to occur. Prepare the Forecast: Use the gathered information to create a detailed cash flow statement for the forecast period. Regularly Update: Periodically update the forecast to reflect actual performance and changing circumstances.