Cash flow projection overview
A cash flow projection outlines the expected inflows and outflows of cash within a business over a set period, helping to forecast whether the business will have enough funds to operate effectively.
Types of cash flow
Positive cash flow
Definition: Cash Inflows > Cash Outflows
- Positive cash flow means a business is generating more cash than it’s spending, supporting stability and growth.
Negative cash flow
Definition: Cash Outflows > Cash Inflows
- Negative cash flow occurs when outgoings exceed income, which can lead to financial strain if not managed properly.
