Forecasting future cash flows is the practice of predicting how much cash a business will generate in the future. Rather than relying on historical data or guesswork, forecasting future cash flows uses sophisticated modeling techniques to make more accurate projections. By taking into account external factors such as the economy, industry trends, and the competitive landscape, businesses can better anticipate what lies ahead. Done properly, forecasting future cash flows can provide valuable insight into how well a business is likely to perform over a given period of time – and provide an invaluable tool for making sound financial decisions.