Measures how accurately a company forecasts its future cash flow.

What it Measures ?

How close were our cash flow forecasts to reality?

Relevant StakeHolders 

Treasury, CFO

In-depth Use Case / Real-world Example

Forecast Accuracy for Cash Flow tracks the variance between projected and actual cash flows over a defined period. For example, if a company forecasts a cash inflow of ₹500,000 and the actual cash inflow is ₹450,000, the accuracy would be 90%. Accurate cash flow forecasting is vital for financial planning, helping the company ensure it has enough liquidity to meet obligations. Poor forecasting could lead to liquidity shortfalls, making it harder to manage operations or invest in growth opportunities.