A cash flow forecast estimates when money will enter and leave a business over a future period. It helps owners anticipate shortages, plan tax and debt payments, decide when to hire or invest, and test how changes in sales or expenses may affect available cash. Unlike a profit and loss statement, a cash forecast focuses on timing. A sale made today may not be collected for 30 or 60 days. A loan brings in cash without creating revenue. Buying equipment reduces cash even when t