- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 29 Jun 2018
Cash flow forecast
A cash flow forecast is an important business tool for every business. The forecast establishes whether there is enough cash to run the business or to expand it. It will also reveal when more cash is going out of the business, than in.
Building a cash flow forecast allows an evaluation of cash resources that are required and when they are required by. Business owners can identify likely future gaps in funding and plan for those gaps accordingly. It is a vitally important tool for predicting the continuing financial health of the business.
Additionally, cash flow models enable business owners to assess 'what if' scenarios by changing key variables to see how vulnerable the business is to price changes, staffing levels, exchange or interest rate movements, and other key drivers.
In larger organisations the cash flow projection can be integrated with day to day operations. This can help identify what production is necessary, what resourcing is required and can provide an assessment of the capacity within a business.
 Find out more
 Related articles on Designing Buildings Wiki
- Balance sheet.
- Business case.
- Cash flow.
- Cash flow statement.
- Construction contract.
- Construction organisations and strategy.
- Cost plans.
- Earned value.
- Fee forecasting.
- Financial management tools.
- Resource forecasting.
- The Late Payment of Commercial Debts Regulations 2013.
- Working capital.
- Whole life costs.
Featured articles and news
From alabaster to travertine – how many types do you know?
Well-designed lighting helps maintain a healthy physiological and psychological balance.
Transferring the risk for obtaining the target BREEAM rating.
A simple but effective way to determine the root cause of an issue.
BSRIA report suggest the European market will double to 415 million Euros by 2023.
Why a wellbeing strategy is vital for property managers.
An ECA briefing for members about the commercial implications of leaving the EU.
A crucial moment on any project - and fraught with danger.
The performance gap from a Northern Ireland perspective.
Book review: Buildings of protestant nonconformity.
Design and testing for health and wellbeing - free download from BRE.