Developing a dynamic and adaptable cash flow model is not a luxury, it is a necessity! In these uncertain times, the ability to analyze, plan and communicate your cash flow model is critical to your survival. Businesses need a clear picture of where they are headed and what improvements/ adjustments need to be made. Cash forecasting develops that picture.
The cash flow forecast should be straightforward and uncomplicated; modeled with multiple “what-if” scenarios for planning. By developing multiple, dynamic scenarios, you will build a guide that can direct your short-term, day-to-day decisions that promote understanding throughout the whole team. To learn more about how to do this, read this article on CFO.com.