Accurate cash forecasting is a powerful tool for businesses. If you can predict how much money you will have on hand in the future, you can better plan new projects and make budgets. Follow these steps to develop a plan for accurate cash forecasts.
Begin by defining why you need cash forecasting and what questions you want to answer with your forecast. At the same time, identify useful data sources and sources of information. You should also evaluate existing cash forecasting tools and choose the best one for you, and make a schedule and decide how far in the future you want to forecast.
With the planning stage out of the way, create your forecast, consolidate the data and turn it into a report. Then, analyze the data and accuracy of your forecast. You can also test your forecast by inserting variables into the formula. Finally, regularly re-evaluate your forecast and fine-tune it as necessary.
Leave a Reply