How to forecast your cash flow [Video]

You don’t need a crystal ball to see into the future. Most small business owners already have everything they need to look ahead and protect their business from cash flow gaps. With some solid forecasting (don’t worry, we’ll guide you through it), the right insights (they’re sitting in your CommBank app) and strategic thinking, it’s possible to find your flow and even cover yourself for emergencies. Here’s how.

What’s a cash flow forecast?

A cash flow forecast is a snapshot of your business liquidity at a certain point in time, and can help with both short and long-term business planning.

Based on your sales history and expenses, cash flow forecasting helps you predict your future cash flow. It looks at your expenses over a specified period, offset by incoming funds to arrive at a cash balance – which may be positive or negative.

If it’s negative, you may need to take action to avoid a …