Like any other type of planning, cash planning is important. Forecasting cash balances allows you to manage proactively rather than reactively. Taking corrective action now to forestall a "cash crunch" is much less stressful than stopping whatever production you were doing and sorting out a cash problem.
After all, the call you want to receive is for a major order, not from the bank advising you that you are overdrawn. This involves collection as noted below, however, before collections comes a need to forecast and manage to the forecast. The forecast includes when payments must be made and when you expect to receive payments from your customers. This plan will then identify if cash shortages might occur and allow you to take proactive action.
Managing cash also involves managing supplier expectations so that goods and services are still delivered. It also involves being proactive with your
bankers especially as growth in sales necessitates a growth in the lines of credit.