To accurately forecast cash both near term and long term, we use two different tools.
- 13-Week Cash Forecast
- 📝Integrated Financial Model (IFM)
The 13-Week Cash Forecast adds an extra layer of effort that can be more costly than it's worth. It should only be done when the company has less than several months' worth of cash.
For longer-term forecasting, the Integrated Financial Model starts with the Fight Club rule of cash forecasting: 📝Don't try to forecast cash.