In an economy crisis where interest rates and stock indexes move up and down and news about company layoffs are part of daily news headlines, financial clarity does not seem like a bad idea.
Are Companies Doing Cash Flow Forecasting?
As much as it seems to make perfect sense to have a
Regardless of the reason for not doing a cash flow forecast, healthy cash flow is the lifeline of all businesses, so there is no lack of motivation.
Why Do Businesses Project Their Future Cash Flows?
Most company executives know they would sleep better at night if they had a mechanism that fairly accurately could tell them if the liquidity of their business is healthy or unhealthy in the months ahead.
There are many logical reasons why an organization benefits from regular cash flow forecasts. Some are to:
- Reduce the risk of insolvency
- Move faster on investment opportunities
- Satisfy bankers to enable debt financing or other bank-backed financial transactions
Automate Cash Flow Forecasts
As in many other cases, technology can help automate laborious tasks. In the case of cash flow forecasting, there is a cloud software category often referred to as
Benefits of CPM solutions include
Most executives would agree that accurate cash flow forecasts provide many benefits to their businesses. Learn more on how to forecast cash flow during uncertain times in