Cash Flow Forecast - GCSE Business Definition

A cash flow forecast is an essential financial tool used by businesses to estimate the flow of cash in and out of the company over a specific period, usually monthly or quarterly.

A cash flow forecast helps businesses anticipate potential cash shortages or surpluses, enabling them to plan accordingly to ensure they have enough cash to cover expenses and take advantage of growth opportunities. For students studying GCSE Business, understanding cash flow forecasts is crucial, as it teaches them how businesses manage their finances, plan for future spending, and ensure financial stability. By analysing cash inflows like sales and outflows such as expenses, students learn how businesses maintain liquidity and avoid insolvency.