What it is
A cash forecast projects receipts and disbursements so leadership sees liquidity, not only ARR growth. In SaaS it must respect billing terms, collections, and deferred revenue — ARR alone is not cash.
How it’s built
Start from bank and AR/AP reality, layer contracted billings and expected collections, subtract known spend and payroll, and scenario stress collections and churn. Tie major swings to ARR and bookings movements.
Where it breaks
Cash forecasts break when annual prepay is treated like monthly ARR, when collections assumptions ignore concentration risk, or when the ARR slide and cash slide tell opposite stories with no bridge.
In the board pack
Put cash next to ARR and P&L — the triad in SaaS board reporting. Pair with runway.
Keep the written definition stable across close, the board pack, and diligence so the same word never means two math models.