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The main objective of cash flow forecasting in treasury management is to ensure adequate liquidity. This involves predicting the timing and amounts of cash inflows and outflows over a specific period to maintain sufficient funds to meet obligations as they arise.

Effective cash flow forecasting allows organizations to identify periods where cash inflows may fall short of cash outflows, enabling proactive measures to secure necessary funds or optimize cash management strategies. Maintaining adequate liquidity is vital for meeting operational needs, preventing insolvency, and ensuring that the business can take advantage of opportunities as they arise.

While minimizing payment processing costs, enhancing investment returns, and evaluating capital projects are important aspects of financial management, they are not the primary focus of cash flow forecasting. Those activities typically fall under broader financial strategies rather than the immediate aim of ensuring a company can meet its day-to-day financial obligations.