Cash Management Forecasting is the process of anticipating and monitoring incoming and outgoing funds to ensure that a company maximizes its cash flow. By accurately predicting when cash will arrive, businesses can make sure there’s enough money on hand to meet operational needs and reduce their risk of running out of money unexpectedly. This involves intensive forecasting from the CFO and financial staff in order to keep track of inflows, outflows, and timing of payments along with analyzing past performance; all of which can be used for making more informed decisions about future cash flow.