Cash planning, cash flow planning or cash forecasting are ambiguous phrases, and can mean different things to different people. Generally, the creation of the indirect or direct cash flow statement is an attempt to explain where the cash has come from and where it has gone.
Cash Flow Planning, In theory, is usually quite detailed and allows finance to look forward weeks or months and analyze their future cash position. This provides insight into the ability to make payments or potentially investments with excess cash.
Regardless of the definition it is important to understand the concept of cash flow planning and why it matters.
