A cash flow projection is another tool to help manage and monitor the financial health of your business and for fiscal year planning and budgeting. In a cash flow projection, you are projecting your potential monthly cash inflows and outflows.

Steady cash flow is vital for any business but even more so if you’re an independent small business. After all, if you don’t have a steady cash flow, you can’t pay bills, employees or even yourself!

Putting together financial projections for your business is a good exercise and tool for business owners to help manage and monitor the financial health of your business as well as for fiscal year business planning and budgeting.