Learning outcomes
Forecasting
Reasons for forecasting
Cash flow forecast
Receipts and payments
Importance of adequate cash flow
Cash flow calculations
Glossary

Forecasting

Importance of adequate cash flow

Cash flow is very important to all businesses as it allows the business to pay expenses and may mean the business will not have to borrow money. If a business does not have to borrow money, they will not have to pay interest.

Why is this important?

Look at the graphic below. Click on each bubble to see one of the consequences of a business not paying its bills.





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