While the format of a cash flow forecast should be consistent with other financial reports, it must also reflect how cash actually flows. Sources and uses of cash should be presented in categories that facilitate forecasting and then comparing actual cash flows to forecast cash flows.
The timing of cash receipts and disbursements, and therefore how they are forecast, will depend on the business or activity. In some cases, there may be a relatively even flow of cash in and out during the period being forecast. In other cases, cash receipts and disbursements may be concentrated on certain dates within the period. The nature of your business, your past experience, and any expected future developments should be taken into account in forecasting.
A cash flow forecast is generally done by periods, for example by month. But it may be useful to set up a cash forecast on a day-by-day basis, as a calendar. This undoubtedly involves making some assumptions and estimates, but it will define cash flows more precisely; tentatively identifying cash surpluses and deficits that occur during the month, and thus allowing for more targeted cash management actions. The more refined you can make your forecast, the more it will help you plan and control your finances, maximizing the use of any surplus funds available, and minimizing the costs associated with borrowing to finance operations.