Why cash flow matters
A profitable business can still face a cash shortage if money arrives later than bills are due. A forecast helps you see timing rather than only accounting profit.
What to put in a forecast
List expected cash receipts and payments by month. Include recurring costs, one-time purchases, debt payments, taxes and realistic sales assumptions. Review actual results against the forecast.
How often should you update it?
Monthly is a useful minimum for many small businesses. Update the forecast when major assumptions change, such as a large customer, new hire or equipment purchase.