Cash Flow Forecasting

Cash Flow Forecasting in Chicagoland Area

Developing and maintaining a stream of steady and reliable cash flow is critical for any business.

With three decades of banking and business experience, the partners at SOGID™ Management Consultants work with our clients to help them develop a strategy for present and future cash flow generation.

Cash Flow Forecasting is a tool that aims to predict a company’s liquidity position over a specific period of time. Understanding an organization’s future cash flow resources plays a big part in sound financial planning and decision making. Our Cash Flow Forecasting models help our clients ensure they have adequate liquidity to meet future short-term obligations, and also manage any potential financial challenges that may occur.

Key Components of Cash Flow Forecasting

In order for cash flow forecasting to be accurate and reliable, there are a number of factors to consider, including:


Sales Revenue – Usually the primary source of revenue for a business, sales revenue is generated from the sale of products, goods, and services. A great majority of accounts receivables come from sales.


Operating Expenses – The projected costs of operating the business, including payroll, mortgage payments, taxes, cost of raw materials, utilities, and other expenses.

Debt Repayments – Payments on loans and other financial obligations must be considered as they reduce available cash flow resources.

Capital Investment – Costs incurred by building expansions, repairs, purchasing equipment, or other upgrades. While these investments are very important, a balance must be struck between cash flow needs and capital improvements.

Timing of Income

Understanding the timing of when revenue is received plays an impactful role in accurate cash flow forecasting. Delays in receivables must be considered during the forecasting process.

The Benefits of Cash Flow Forecasting

There are many benefits to SOGID™ Management Consultant’s Cash Flow Forecasting services, such as:

Financial Planning – The success of a corporate strategy, and the effectiveness of decision making are optimized by understanding a company’s future cash flow position.

Risk Management – Forecasting cash flow helps to predict potential shortages, so proactive strategies can be enacted to prevent or minimize the impact.

Liquidity Management – Knowing that a company can meet its future short and long-term obligations is foundational to developing a realistic business plan to accomplish organizational goals.

Stakeholder Confidence – Proactively evaluating future cash flow positions instills confidence in a company’s management team for investors and other stakeholders.

Cash Flow Forecasting in Chicago

For three decades, the highly knowledgeable partners at SOGID™ Management Consultants have helped clients across various industries create business strategies pave the way fora strong future. Regardless of the type of business or size, our market proven solutions produce results. If your organization needs assistance developing a reliable and accurate cash flow forecasting model, we can help. Allow us to demonstrate how we can be a strategic, long-term partner in your business success. Interested in discovering more about our services? Contact us today!

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