MANAGEMENT·June 2026
Cash flow: the forecast that prevents emergency decisions
Profitable companies also stop for lack of liquidity. The difference is seeing the problem weeks ahead.
Profit and cash are not the same thing. A company can report a profit and lack the cash to pay salaries the following month, particularly when collection periods stretch and payment terms do not follow.
The tool is simple: a twelve-week cash forecast, updated weekly, with inflows by client and outflows by nature. The exercise forces a different discipline around collection and shows the critical weeks in advance.
With that map in front of you, decisions change in nature. Negotiating terms with a supplier, pulling a collection forward or arranging a credit line all work when taken early and fail when taken on the day.
The forecast does not remove cash pressure. It replaces reaction with decision.