Cash flow forecasting is a vital part of an organization’s treasury management. It is a treasury activity that requires daily handling. A good forecast enables the treasurer to make the most efficient decisions to optimize the return on investment or minimize the cost of borrowing.
To be effective, a cash flow forecasting system is required. Effective cash flow forecasts provide direction for daily, weekly, and monthly horizons. Poor forecasts can severely hamper the treasurer in making sound decisions. If the forecast is in doubt, the treasurer will tend to stay very short term, potentially costing the organization increased borrowing costs or lost opportunity investment returns.
TIS Books offers the book Cash Flow Forecasting: A Hands On Approach that describes how to set up a cash flow system using only MS Excel. We also sell a CD-ROM, with 32 cash flow forecasting worksheets in one MS Excel workbook, as well as a complete package including the book and the 32 worksheets.