The Importance of Cash Flow Forecasting

Did you know that most local governments do not prepare appropriate cash flow forecasts? GFOA’s best practice on cash flow forecasting discusses the importance of developing forecasts to ensure your entity’s payables and liquidity needs are met. Governments can use simple tools to forecast their largest inflows and outflows to avoid liquidity risks and develop practical short-term and long-term investment strategies. This session will provide attendees with key takeaways on the importance of cash flow forecasting, show how to develop a simple forecast, provide peer examples of forecasting methods, and advise on how to get started or improve your entity’s current cash flow forecasting program.

Session Material: Grand Rapids Cash Flow Case Study