Cash flow projections are an important tool that accountants use to help their clients manage their finances effectively. Essentially, a cash flow projection is a financial forecast that shows how much cash a business is expected to generate or use over a specified period of time.
Capital accountants use a variety of methods to create cash flow projections for their customers. Here are some general steps that accountants may follow:
1-Gather financial information
2-Determine cash inflows
3-Estimate cash outflows
4-Forecast future cash flows
5-Analyze the projection
6-Update projections
