Cash flow forecasts should be developed at least:

Cash flow forecasts are essential tools for any organization as they help in planning and managing financial resources effectively. Developing forecasts on a rolling 12-month basis allows an organization to maintain a dynamic and up-to-date view of its cash flow situation. This approach ensures that the forecast is continually adapted to reflect current conditions, including any changes in revenue, expenses, and other financial factors.

A rolling 12-month forecast provides a short-term focus that is essential for operational decisions. It enables an organization to anticipate cash shortages or surpluses, facilitating timely responses to potential financial challenges or opportunities. This method of forecasting helps in maintaining liquidity and can be particularly crucial for organizations that have fluctuating cash flows or are subject to seasonal variations in revenue.

Moreover, a rolling approach encourages regular reviews and adjustments based on the latest data and trends, which enhances accuracy and relevance. It is more beneficial than forecasts that are limited to monthly or annual perspectives because it provides a continuous insight into financial health, thus allowing for more strategic decision-making. In contrast, less frequent forecasts may lead to outdated and potentially misleading information that does not reflect the current financial environment.