What Are Common Challenges in Cash Flow Forecasting?
Despite its importance, cash flow forecasting comes with challenges:
Accuracy: Forecasts are often based on assumptions that may not always hold true. Unexpected events can impact accuracy. Data Quality: Inaccurate or incomplete historical data can lead to flawed forecasts. Complexity: For startups and small businesses, the process can be complex and time-consuming. Market Volatility: Changes in the market can affect cash flow, making it difficult to predict.