Cash Flow Analysis & Forecasting for Smarter Financial Decisions
Need a clearer view of your cash flow?
Whether you’re worried about covering operational expenses or planning to scale, getting a grip on your cash flow is the smartest move you can make.At Orbit, we simplify cash flow analysis, build robust cash flow forecasting models, and guide you on optimizing every dollar. So you can make informed decisions, manage financial risk, and keep your business thriving.
What is Cash Flow Analysis?
Cash flow analysis is the process of tracking, reviewing, and interpreting the cash inflows and outflows in your business. Unlike your income statement, which might show profits on paper, a cash flow analysis tells you the real story
This type of flow analysis goes beyond spotting “positive cash flow”—it helps you see how your accounts receivable, accounts payable, capital expenditures, and operational expenses all impact your cash position.
Modeling benefits beyond the numbers
A cash flow forecast estimates future cash inflows and outflows over weeks, months, or quarters. It’s one of the most powerful tools in financial management.
Even profitable businesses can get into trouble if cash gets tied up in receivables or delayed payments. A cash flow projection keeps surprises off your doorstep.
The Discounted Cash Flow (DCF) Analysis Model Explained
If you’re exploring your business’s long-term value—say for an acquisition or investment—discounted cash flow analysis is key.
A solid discounted cash flow analysis model lets you calculate the real value of your company’s operations, factoring in risk, time, and expected returns.
How We Optimize Your Cash Flow
Cash flow management isn’t just a spreadsheet—it’s a strategy. We look at:
- Accounts Receivable: Can we accelerate collections or tighten payment terms?
- Accounts Payable: Are there opportunities to stretch payments without harming relationships?
- Operational Expenses: What costs can be trimmed or deferred?
- Cash Reserves: How much should you keep on hand vs. reinvest?
- Interest Rates & Debt: Could refinancing improve cash flow?
Our experts build cash flow optimization plans tailored to your unique business, so you maintain a healthy balance between paying bills and investing in growth.
FP&A & Financial Modeling to Power Decisions
Financial Planning and Analysis (FP&A) connects your income statement, balance sheet, and cash flows to guide every major decision.
Visual Snapshot: Direct vs. Indirect Cash Flow Forecast
| Direct Method | Indirect Method |
| Starts with actual cash transactions (invoices, payments). | Starts with net income, adjusts for non-cash items (depreciation, inventory changes). |
| Great for short-term cash management. | Often used for long-term planning & funding models. |
| Shows exact timing of cash movements. | Helps align cash with accrual-based financial statements. |
Frequently Asked Questions
Disclaimer
This page is for general information only and doesn’t constitute accounting, tax, or legal advice. Please consult qualified professionals about your specific situation. Orbit Accountants is not responsible for actions taken based on this content.
