What a cash flow forecast is
A cash flow forecast projects the cash a business expects to receive and pay out over a future period. Its purpose is to manage liquidity, making sure there is enough cash on hand to meet obligations as they fall due and giving early warning of a shortfall before it arrives.
A forecast is distinct from profit. A business can be profitable on paper yet run short of cash if money comes in later than it goes out, for example when revenue is invoiced but not yet collected while wages and suppliers still need paying. The forecast focuses on timing, mapping when cash actually moves rather than when it is earned.
Short-term forecasts are often built as a rolling projection over a fixed window, so the picture stays current as each period passes.
The cash flow forecast in the Cohiva platform
Cohiva Crunch produces a real-time cash flow forecast across multiple entities. Because Crunch receives transaction data on one data layer, the forecast reflects activity as it happens rather than being rebuilt by hand. The short-term version is a rolling 13-week cash forecast, which gives finance teams a current view of liquidity across the group.