Cash inflow

Cash inflows include cash received from sales, money received from a new bank loan and receipts from selling an asset. Cash outflows include payments for stock or raw materials, wages, rent and utilities. The forecast records these in the period when the money is expected to move, rather than simply when a sale or purchase is agreed.

Customer payments are cash inflows; payments for stock, wages and rent are cash outflows. Together with the cash already available, these estimates show the expected cash balance at the end of each month.