What does it mean to make a cash flow projection and how is it used for financia

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A cash flow projection provides an estimate of the business's cash receipts and spendings for each month or within each quarter. It allows a company to understand when it may not have enough cash or when it has too much. People in business use what they foresee about trends to make choices about hiring, allocating capital or cutting expenses. To stay current on bills and debt, maintain liquidity and meet tax responsibilities, you need accurate forecasts of your cash flow. They are essential parts of a company's financial planning strategy.