A cash flow forecast is an estimation of a business’ cash flow in a given future time period (typically 12 months). It informs the business’ financial planning and highlights potential problems before they happen, allowing it to take pre-emptive action. There are several different methods that can be used to forecast cash flow, and businesses can benefit from forecasting various hypothetical scenarios, to be ready for what actually happens. Specialised software exists to help businesses forecast their cash flow with ease and accuracy.