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Cash Flow Forecast

Cash flow is the lifeblood of any business. It represents the receipts coming in and expenditure going out of the business in any period of time.
Cash flows into the business as receipts from cash received from selling products or from loans. Cash flows out of the business as payments to pay wages, supplies and interest on loans.

Profit and cash flow are two very different things. Cash flow is simply about money coming and going from the business. The challenge for managers is to make sure there is always enough cash to pay expenses when they are due, as running out of cash threatens the survival of the business.

Cash flow is increased by selling more goods or services, selling an asset, reducing costs, increasing the selling price, collecting faster, paying slower, bringing in more equity, or taking a loan.

Click to see our cash flow forecast template.

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