Forecasting is one of the most useful financial tools a business can rely on, but accuracy is often harder to achieve than many expect. A well-prepared forecast can guide decisions about hiring, investment, and cash flow management. An inaccurate one, on the other hand, can create false confidence, lead to overspending, and make it harder to respond to real challenges.

Many businesses already track financial metrics like profit margins, debt ratios, or cash flow. But knowing what these numbers are isn’t enough. To truly benefit, business leaders must use them to inform strategic decision-making, from hiring and pricing to expansion and investment.

A cash flow forecast is a vital financial tool that can provide valuable insights into the health of your business. It offers a detailed prediction of your incoming and outgoing cash, allowing you to make informed decisions about your operations and future growth.  

As the amount of KPI and management information NKC generates for our clients increases, I often find myself in numerous team calls discussing decision-making with business owners and management teams. During these discussions, I recall an insightful interview clip from Jeff Bezos that frames the decision-making process effectively.