What is the term for the forecast predicting the expected cash balance at the end of each month in the future?

The term used for predicting the expected cash balance at the end of each month in the future is known as a cash flow forecast. This type of forecast is essential for businesses as it helps in estimating the inflows and outflows of cash over a specific period. By analyzing factors like expected sales, expenses, and other financial transactions, a cash flow forecast provides a detailed outlook on potential cash positions. This enables businesses and individuals to plan for any shortfalls or surpluses and make informed decisions about budgeting, investments, and overall financial management.

A cash flow projection specifically emphasizes the estimation aspect, which is closely related but lacks the connotation of a structured future report that is often encompassed in the term "forecast." While cash flow analysis entails examining past cash flows to understand trends, the cash flow statement is a financial document that records actual cash inflows and outflows over a period, rather than predicting future balances. Therefore, the terminology used in "cash flow forecast" accurately encapsulates the forward-looking nature of anticipating monthly cash balances.