Cash Flow Forecasting Checklist ( FINANCE )

This checklist is designed to guide the finance team in preparing a cash flow forecast to ensure that the organization maintains sufficient liquidity for its operations. It outlines the necessary steps to gather data, analyze trends, and project future cash flows accurately.

• Gather Historical Cash Flow Data

  Collect historical cash flow data for the past 12 months, including operational cash inflows and outflows.

• Identify Cash Flow Drivers

  Determine key drivers of cash flow, such as sales forecasts, payment terms, and seasonal trends that influence inflows and outflows.

• Project Future Cash Inflows

  Based on historical data and identified drivers, estimate future cash inflows for the next 12 months.

• Project Future Cash Outflows

  Estimate future cash outflows, including fixed and variable costs, capital expenditures, and any expected one-time expenses.

• Create Cash Flow Forecast

  Compile the projected inflows and outflows into a cash flow forecast, detailing monthly cash position.

• Review and Adjust Forecast

  Review the cash flow forecast with the finance team, making adjustments based on feedback and new information.

• Monitor Actual Cash Flow

  Continuously monitor actual cash flow against the forecast and update the forecast monthly to reflect new data.

• Report Findings

  Prepare a report summarizing the cash flow forecast, significant findings, and any recommended actions to enhance cash flow management.