Question about cashflow forecasts?
Question by Mina: Question about cashflow forecasts?
I’ve been running my small business for 5 months now, and I’ve been doing my best to do a cashflow forecast a year in advance.
As I’m catching up through the months to put in my actual takings, it’s clear most of my forecasting has been too low. My question is do I redo my forecast to reflect my increased business, or do I leave it as it is and be impressed how busy I am (or how timid my forecast was!).
Yes I use Excel. I was given a spreadsheet already done which I didn’t understand so a friend is redoing it for me.
Thanks very much, I’ll make time to keep it updated. 
Best answer:
Answer by mainecpa
The purpose of the forecast is to plan and anticipate your financing needs as accurately as possible. I would update the forecast every month as needed.
What tool do you use, Excel? I would recommend it as being easy to use and easy to modify. QB also has a good budget module that is also easy to modify.
Give your answer to this question below!
