Cashflow forecasting Why do we need to bother about cashflow forecasting and what is cashflow forecasting anyway?
Monday 29th of May 2017 08:00
Why do we need to bother about cashflow forecasting and what is cashflow forecasting anyway? The saying “Cash is King” is often used to explain the failure of businesses. Without the proper amount of cash on hand, entities can run into major trouble, and even be forced into bankruptcy. Therefore cash is single most important financial factor in your golf club.
Cashflow forecasting is about predicting when money will move in and out of your bank account in the future. The amount of cash you have in your bank account dictates what you can and cannot do. Say it’s the end of the month and you need to pay your employees, tax, VAT or anything else. It doesn’t matter how much money you are owed; either you have the cash to pay, or you don’t.