Cash Flow Forecasting is the process of estimating a company’s future cash inflows and outflows over a set period. It’s a critical financial planning tool that helps businesses ensure they have enough liquidity to cover expenses, plan investments, and avoid cash shortages. AI-powered tools like Luca AI improve forecasting accuracy by analyzing historical transaction data, seasonal trends, and external market factors. Forecasts can be short-term (weekly or monthly) for operational planning, or long-term (quarterly or annually) for strategic growth initiatives. Accurate cash flow forecasting supports better decision-making in areas such as hiring, inventory purchases, and debt repayment. Automating this process reduces the risk of human error and allows for continuous updates as new data becomes available.
