A cash forecast is a document that projects an organization’s expected cash receipts and disbursements. It helps to keep track of the company’s financial health by monitoring immediate and future cash needs. The cash forecast is an essential tool in creating an effective budget, helping organizations make wise decisions about their short-term and long-term investments. It also helps to identify areas where money may be needed for unexpected expenses or projects that could benefit from additional funds. By keeping an eye on incoming and outgoing cash flows, businesses can plan ahead and make sure they have enough money available when they need it.