What is three-way forecasting and how is it performed? Colin Wright explains how understanding the future cash position of the business requires quality planning processes. This is achieved through the three-way forecast. As the name suggests, there are three components to this planning process. The profit & loss forecast determines expected cash flows from operational activities The balance sheet forecast determines expected cash flows based on the balance sheet movements of the business The cashflow forecast is determined from the profit & loss and balance sheet forecasts How well this process will forecast the cash position throughout the forecast [...]