Question

Given that the cash flow forecast is crucial for the success of a project, who should be responsible for developing these forecasts? Should it be a team effort, and if so, who should take final responsibility for the accuracy of these forecasts?

Answer 1

Explanation:-

yes, the cash flow forecast is essential for the success of a project and the business owner should be responsible for developing these forecast. yes, it should be a team effort because it is important that management forecast what is going to happen to cash flow to make sure the business has sufficient funds to survive and management should forecast cash flow is dependent on the financial security of the business. final responsibility should be taken by owner of the business because if the business is struggling, or is keeping a watchful eye on its finance, the business owner should be forecasting and revising his or her cash flow on a daily basis. however, if the finances of the business are more stable and safe, then forecasting and revising cash flow weekly or monthly is enough. for instance, cash flow is simply the difference between the total cash inflows and the total cash outflows. so, it is very important to prepare for the effectiveness and the effeciency of the business.