How to create a cash flow forecast that reveals the company's true funding gap

The biggest mistake in cash flow forecasting is simply projecting forward from the P&L statement. Having profit on the books doesn't mean you'll have the cash to pay salaries next week; issuing an invoice doesn't mean the customer will pay on time. I once learned the hard way when I was too optimistic about accounts receivable collections; I ended up with supplier payments and payroll hitting…