5.5 Cash and cash flow GapFill

A cash flow forecast is a prediction of the future flows of cash into and out of a business.         

A cash flow forecast is a report that shows the   illegal expected unexpected rushed  movement of cash into and out of a business during a period of time, which is usually a year.  The cash flow forecast should be included as part of a business   talk decision plan event.

Cash is important as it will be needed in a business to pay  debtors shareholders cleanerssuppliers.  If a supplier is not paid on time, they may refuse to supply the business with goods or stock in the future.

Cash may also be used to pay the expenses or   turnover overheads underheads headliners of the business.  These are costs that do not directly contribute to making the product or performing the service.  Examples of overheads are    working singing advertisinglaughing and administration costs.

Cash may also be used to pay the staff their   losses wages revenues profits .  If staff are not paid on time, they may leave the business, which may mean the business will incur more costs by having to   sack fire dismiss recruit new staff.  The staff may also decide to take union or legal action against the business.

“Cash is King” is an expression some business people may use.  This is a way of showing how important it is.  If a business has a  negative positive exceptional wonderful cash flow over time, it may fail or become insolvent .

There is a    profit difference worry final between cash and profit.  Profit is recorded in the business accounts at the moment of the sale.  However, cash is only recorded when payment is made.  For example, some businesses will give 30 days'  credit revenue time debit to their customers.  This means that cash is not recorded until it is received, which, in this example, is 30 days after the profit is recorded.