Drawing up a provisional cash flow budget

A company whose cash flows tend to increase over time will therefore need to focus on improving its financial management. In this context, it is important to draw up a projected cash flow budget. This would enable the company to quantify its short-term cash position. Furthermore, these forecasts will subsequently enable the company to manage its cash flow. It would thus be possible and easier to anticipate and find solutions to manage any cash surpluses or deficits, in order to identify the most suitable investment options in the event of a cash surplus and the appropriate financing methods to cover any deficit. The use of a cash flow budget is particularly useful during the start-up phase and the business development phase, which are critical stages for the company's cash flow. The projected cash flow budget is a key component of sound cash flow management.

Pages: 64, Paperback, Our Knowledge Publishing