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Creating a financial forecast and budget is fundamental to managing cash flow for a small business. A financial forecast can help you estimate expected revenues, expenses, and cash flow. It should be based on historical data such as sales figures, inventory information, expenses, market trends, and other relevant factors. You can use your financial forecast to build your business budget, which serves as a detailed projection of cash inflows and outflows for a specific period. Once you create a budget, you can monitor and compare actual performance against budgeted figures monthly. This is one of four must-dos when it comes to managing cash flow for your business. We’ve outlined the rest here: https://lnkd.in/gjHpK69h

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