Why would a bank manager want to see a cash flow forecast?
Why a cash flow forecast is important to your bank manager is so they can build trust in you and your business. Being able to produce professional forecast reports, together with being on top of your numbers, will help to earn their trust. Your bank manager needs to see a cash flow forecast in order to approve loan applications. They will use your forecasts in conjunction with your management accounts and historical accounting information to confirm your business is viable and able to comfortably repay the loan. The combination of the forward period reports together with historic data will help to build a picture of credibility.