Cashflow forecasting with linear models

Cash flow is vital to any business that deals with cash, which could be in tangible form of liquidity or intangible form of assets. The common expression “cash is the king” is something really true. It helps the business run, grow, expand and pay the expenses. This paper analyses the cash flow processes in general, presenting a new approach to better forecast the cash flow. An accurate forecast of the cash flow is important to make sure that the business has enough to survive without running our of cash. It is the backbone to all financial decisions.