A Cash Flow Projection is a budget and goal-setting tool, used to estimate your business income and expenses over a period of time. It is an estimate of cash coming into your business (deposits in your business checking account) from income and borrowing and cash flowing out of your business (checks written from your business account) to pay expenses, buy equipment, and take care of other business expenditures. A Cash Flow Projection, is a documents that shows where cash is coming from, where cash is going, and when the activity takes place. It is a forecast of your monthly cash position over the next 12 months. It helps you to determine where your shortfalls are, and what, when, and how to finance what needs to be done.