How is cash forecasting valuable?

Cash flow forecasting is the process of projecting a company’s cash flow over time. To evaluate if a company has enough money to function and grow, financial predictions are utilized by business owners based on past events and management insight. Cash flow forecasts can help companies avoid late penalties, budget for unexpected expenses, and more, to better manage their cash flow. A cash flow forecast is important to a business because they provide visibility and control and help management make informed decisions.