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Digital Business Models: Applied Frameworks
Cash Flow Forecasting
The process of estimating the flow of cash into and out of a business to manage liquidity and make informed financial decisions. ✨
Article Points:
1
Cash flow forecasting is like creating a budget for your business's bank account.
2
It's essential for managing short-term obligations like payroll and supplier payments.
3
The Direct Method forecasts specific cash inflows (e.g., customer payments) and outflows (e.g., bills).
4
The Indirect Method starts with net income and adjusts for non-cash items.
5
A rolling 13-week forecast is a common best practice for short-term liquidity management.
6
A forecast is only an estimate; always be prepared for variations and update it regularly.
Source:
Cash Flow Forecasting
Cash Flow Forecasting
No Mindmap Data
Source:
Cash Flow Forecasting
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