Treasury

What is a cash flow forecast?

A projection of expected cash inflows and outflows over a period to help manage liquidity and avoid shortfalls.

What is the difference between cash positioning and cash forecasting?

Cash positioning shows today’s actual bank balances (real-time view)

Cash forecasting is a forward-looking estimate of future cash flows.

What is a negative cash variance?

When actual cash is lower than what was forecasted. Often due to delayed inflows or unexpected outflows.

What is a 13-week rolling forecast?

A cash forecast that always includes the next 13 weeks; updated weekly by dropping the past week and adding a new future one.

What are typical cash inflows?

Customer Payments

Loan Proceeds

Tax Refunds

Interest Income

What are typical cash outflows?

Payroll

Vendor Payments (VP)

Rent/Utilities

Loan Repayments

Tax Payments

What is liquidity management?

Ensuring the company has enough cash or access to cash (like credit lines) to meet obligations without disruption.

What is a line of credit?

A pre-approved amount of borrowing a company can draw from as needed, often used to cover short-term cash shortfalls.

What is working capital?

Current assets – current liabilities

Shows how much short-term capital is available to run the business.

What is bank reconciliation?

Matching a company’s internal cash records with the bank’s records to ensure accuracy and spot errors or fraud.

What is treasury's role in a company?

Manage Cash and Liquidity

Forecast Cash Flows

Handle Banking Relationships

Support Risk Management

Ensure company can meet financial responsibilities on time