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To understand where the finance is coming from - where its going and to ensure that you no not have a point where you having zero or even a minus in the Bank and large debts coming in. Cash flow monitoring is vital when there is for instance a recession. This is when many companies will not have enough cash available to purchase the good to make the products they want to sell because a customer still has to pay for what they have.

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Q: Why it is important to prepare a cash-flow forecast?
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Related questions

What is the point of cashflow forecast?

A cashflow forecast is very important in financial management. It plans the future cash requirements so the company can avoid going into a crisis of liquidity.


What term is used for a detailed estimate income and spending for a twelve month period?

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Can I monitor and track my business cash flow using a computer program?

Planware.org has a program called Cashflow Plan. It is a program that allows you to prepare monthly cashflow projections. Cashflow is a good program for tracking cashflow as well as planning your budgets and improvment plans.


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A financial package or a spreadsheet.


When was Cashflow Technologies created?

Cashflow Technologies was created in 1997.


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so that we can prepare in case something really bad happens like an earthquake or something.


How important is a cash forecast?

Cash forecast is important so that a business does not run out of money. It is there so that the boss can see how much money is there and cannot say he did not see money crisis coming.