Cash Flow Forecasting and Break-Even Analysis

A cash flow projection reflects factors such as terms extended to customers, supplier terms, seasonal variations, and other factors that influence when cash will actually come.  A break-even analysis examines the interaction of fixed costs, variable costs, price, and unit volume to help you determine what combination of elements is necessary to break even. It cannot be overstated that Cash Flow Is King! Knowing your cash position at any given time is critical to increasing the survival chances of your business.

This document ALSO contains instructions on how to use our resource Cash Flow Template, also found in the resource library.