Make sure that the business can afford to pay suppliers and employees.
Spot problems with customer payments – preparing the forecast encourages the business to look at how quickly customers are paying their debts. Note – this is not really a problem for businesses (like retailers) that take most of their sales in cash/credit cards at the point of sale.
As an important discipline of financial planning – the cash flow forecast is an important management process, similar to preparing business budgets.
External stakeholders such as banks may require a regular forecast. Certainly if the business has a bank loan, the bank will want to look at cash flow forecasts at regular intervals.I look forward to working with you.