Cash Flow Planning

Sustainable growth is essential for companies to be permanent. One of the prerequisites for ensuring sustainability is to make the right cash flow management. In order to see the current situation of the company and plan the future, the most accurate analysis can only be made on the basis of cash flow. Predicting cash flow and taking measures to manage it requires a special expertise that combines statistical and financial knowledge.

Statement of Cash Flows is the table that explains the changes in the cash and cash equivalents of the enterprise in 3 different classes, which are the cash flows for the period, as the basis, investment and financing activities. In the simplest form, the cash flow statement below has the essential stages that must be shown.

  • Cash Flows from Operating Activities
  • Cash Flows from Investment Activities
  • Cash Flows from Financing Activities
  • Effect of Foreign Currency Translation Differences on Cash and Cash Equivalents

In addition to creating an emergency fund, companies, individuals and families should establish a cash flow plan to ensure they can properly meet their spending needs on a regular basis. Those without an effective cash flow plan risk going into debt to cover their living expenses.


1.Check your profitability. First, make sure your business is earning a reasonable profit.
2. Do a cash flow projection. Next, prepare a cash flow projection for the coming year.
3. Finance big buys instead of draining cash.
4. Speed up cash inflows.
5. Raise cash quickly in a crunch.