Cash Flow Forecast

A cash flow forecast is a way of projecting the likely cash that will flow through the organisationand is useful for predicting any shortfalls that may arise. It is different to the P&L as it shows only cash and it records thelikely timing of cash payments and receipts, usually on a monthly basis. The P&L shows income and expenditure in theperiod when an invoice is issued or received, not when the actual cash is physically received or paid out.

 

reference: Glossary of Financial Terms | Southampton.ac.uk

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