This checklist is designed to ensure a comprehensive cash flow projection process, allowing for effective management of cash resources and planning for future financial needs.
Collect financial data from previous periods, including income statements and cash flow statements, to identify trends in cash inflows and outflows.
Forecast expected cash inflows based on historical data, current contracts, and anticipated sales growth for the upcoming period.
Estimate cash outflows by reviewing fixed and variable expenses, planned investments, and any anticipated large purchases.
Consider any seasonal variations that may impact cash flow and adjust estimates accordingly to reflect peak and off-peak periods.
Create a projected cash flow statement that summarizes estimated cash inflows and outflows, providing a clear overview of expected liquidity.
Regularly review the cash flow projections against actual performance and adjust estimates as necessary based on real-time financial data.
Share the cash flow projections with relevant stakeholders, including management and finance teams, to ensure alignment and prepare for funding decisions.