The cash forecast
The balance day by day for the next ninety days and month by month for twelve, from what is already known.
Cash flow shows the last thirty days from the bank statements and the days ahead from dated items only:
- invoices customers owe, on their due dates;
- bills the company owes, on their due dates or the date you scheduled;
- net salaries on pay day, payroll taxes (TSD) on the 10th, VAT (KMD) on the 20th;
- recurring payments Profflow has seen in the statements.
Each day shows what moves the balance. The lowest day ahead is named with its date, and the reserve is drawn as a line. Money in and Money out break the same figures down by customer, payee and category.
Scenarios — a hire, a raise, a purchase, more marketing, a price change, a loan, a cut in costs — are laid over the twelve-month forecast, so the effect on cash and runway is visible before the decision.
Sales that have not been invoiced are not in the forecast. It shows what is known, not what is hoped for.