In the process, you will wind up gathering information from salespeople, service representatives, collections, credit workers and your finance department. Start your cash flow projection by adding cash on hand at the beginning of the period with other cash to be received from various sources. Watch out for assuming without justification that receivables will continue coming in at the same rate they have recently, that payables can be extended as far as they have in the past, that you have included expenses such as capital improvements, loan interest and principal payments, and that you have accounted for seasonal sales fluctuations. They're educated guesses that balance a number of factors, including your customers' payment histories, your own thoroughness at identifying upcoming expenditures, and your vendors' patience. Understand that cash flow plans are not glimpses into the future.
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