What is the essential aim of a cashflow forecast?

The essential aim of a cash flow forecast is to predict future cash movements. This tool is vital for businesses as it helps them anticipate cash inflows and outflows over a specific period, allowing for better financial planning and decision-making. By forecasting cash flow, businesses can identify potential shortfalls before they occur, ensuring they maintain sufficient liquidity to meet obligations such as paying suppliers, employees, and other expenses.

The other choices focus on different aspects of financial management. Documenting past cash transactions refers to record-keeping rather than future planning. Measuring profitability relates to evaluating a company's overall financial performance, which doesn't specifically address cash flows. Analyzing market trends involves understanding broader industry movements and consumer behavior, which are important but not directly tied to the specific aim of maintaining and forecasting cash flow.