In this course we explore cash flow forecasting at its most basic level. We assume little or no forecasting experience by participants, or a desire to improve their cash flow forecasting.

We begin with a description of a common structure for cash flow forecasting and then fill in the pieces – information, sources, etc. – that are necessary for an effective forecasting system. We discover that most short-term forecasting methods are not complicated. We discuss how to identify potential sources both personal and computer. We break down data to explore how valuable the data items are to the overall forecast.

Acknowledging that we may not be able to find sources for all items, we introduce short-term forecasting methods that can be used in conjunction with estimates from “knowledgeable” sources. For example, some methods can be used to translate a data item to a forecasting variable. In this way we ask our sources to estimate what they know, and we can then translate the information into the form we need for the forecast. Finally, we gather up all of the pieces we identify and construct a basic forecasting template.

If you would like Continuing Education Credit (e.g. CPE, CE, CPD, etc.) for this course, it is available if you take this course on the Illumeo dot com platform under course title: Fundamentals of Cash Flow Forecasting. Illumeo is certified to provide CPE in over two dozen different professional certifications covering finance, accounting, treasury, internal audit, HR, and more. However, in order to receive CPE credit the courses must be taken on an ‘approved-by-the-governing-body’ CPE platform, and for over two dozen corporate professional certifications, that is the Illumeo platform. Go to Illumeo dot com to learn more.