Creating Cash Flow Projections

In developing your workforce plan, you want to make sure that you have adequate cash on hand to cover your payroll expenses. A cash flow projection (or cash flow budget) is an estimate of the amount of money you expect to flow in and out of your business. It includes all your projected income and expenses.

Monthly cash flow projections can help identify when you can expect to experience cash shortfalls in your production year. If you anticipate a temporary cash shortage, you might explore opening a line of credit or a short-term operating loan to help bridge the gap. Planning ahead is a key management strategy.

Here are some resources to help you develop cash flow projections:

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