Cash Flow Projection

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SHIRAS (Querist)

10 March 2011 What is Cash Flow Projection? I think It means Monthly or yearly Cash Flow Forecasting. It is not actually hapend. In january we prepare for February Cash Flow forcating.( Forcasting) It is right or wrong?
Any one reply
Thanks

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

10 March 2011 it means knowing the cash flow for your business, forecasting your cash needs, planning your borrowing strategy so you have cash when you need it, and having financial records that show your payback ability. Even a business with respectable sales volume can have cash flow problems, and it is often due to poor financial planning.

The Cash Flow Projection shows how cash is expected to flow in and out of your business. For you, it's an important tool for cash flow management, letting you know when your expenditures are too high or when you might want to arrange short term investments to deal with a cash flow surplus. As part of your business plan, a Cash Flow Projection will give you a much better idea of how much capital investment your business idea needs.

For a bank loans officer, the Cash Flow Projection offers evidence that your business is a good credit risk and that there will be enough cash on hand to make your business a good candidate for a line of credit or short term loan.

SHIRAS

SHIRAS (Querist)

11 March 2011 Thanks For your reply
I am working as an Accounts payable Accountant. So the company wants every month Cash flow Projection Report Given to the Finance Manager.
So i am only to give to Payable Cashflow report to management. ie. Suppliers payables, salary payable, Tele, eletricity and other admin Expense payables. i am a right. or it is wrong what Payable cash Flow reports are given to the management.
Thanks For your Reply in Advance

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