What is my cash balance How do I predict my cash balance to

What is my cash balance? How do I predict my cash balance to be six months from now? What are some examples of cash flow projection methods in a company?

Solution

The forecasting techniques that can be used in Cash forecasting for the next 6 months can be:

The best technique is the distribution method and the budgeting techniques: In companies, we use to budget our all cash inflows and cash outflows month-wise and estimate the closing balance of cash at the end of the month and thus all estimates of the cash balances till the end of 6 months.

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