From the June 2012 issue of Treasury & Risk magazine

Best practices in liquidity management: Ten cash flow forecasting do’s and don’ts

As every treasurer knows, no discussion about liquidity management is complete without addressing cash flow forecasting. Today, as markets continue to gyrate, liquidity management and risk assessment remain both top of mind and part of business contingency planning, for treasurers and corporate boards alike. In fact, two thirds of respondents to the most recent AFP Liquidity Management Survey cited improving cash forecasting as one of their top priorities for cash and liquidity management.conditions has become a greater priority.

There is no silver bullet to improving cash forecasts. However, certain actions can be taken, and others should be avoided, to get a clearer, more reliable picture of cash flow dynamics across the organization.

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