How is Cash Forecasting computed?

Summary

The Cash Forecasting report intends to show you how much money you received in prior months, how much you can expect to get this month, and how much you should expect to receive in future months.

Requirements

Cash Forecasting relies on invoices being sent on time and marked as paid accurately to generate meaningful forecasts. It assumes that all Draft invoices will be sent on their invoice date (or today if the invoice date is in the past) and that all Due invoices will be paid on their due date (or this month if the due date is in the past).

These assumptions are not accurate for merchants who frequently invoice late or receive payments late. They are also not accurate for merchants who rely substantially on usage-based billing (which often shows as $0 before usage is uploaded).  

In the near future we intend to instead represent payment dates based on a customer’s average days to pay and other information Tabs knows about the customer relationship.