Has anyone developed a reliable cash flow projection process and reporting mechanism which includes minimum cash threshold to meet operating needs.
Cash Flow Projection Process
Answers
We do weekly outlook calls for each business unit. We not only project sales/EBITDA, but also project key balance sheet accounts (month end balances) and reflect operating cash flows. Since we are a manufacturer, we project Capital Expenditures, inventory, A/R, payables, and other accruals. We have enjoyed extremely good accuracy, but it also helps that we have an incentive plan that includes cash flows. We publish this document each Thursday night and have a call on Friday morning with key people in the business unit. And no, we do not use a fancy system, but use a simple
There is enterprise software that integrates CRM and ERP data to publish project (or production) milestones and revenue forecasts if an organization is too large to be able to handle that manually. It's more often touted to best help long-range planning and capital investment
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Accounting