Cash Flow Forecast Template for Small Businesses
A general forecast for service and product businesses that want a clear view of the next 13 weeks and 12 months.
Cash lines a small business forecast needs
These are the receipts and payments we build into the Small Business template. Use them as a checklist even if you build your own.
Cash in
- Customer payments (cash and card)
- Invoice collections
- Owner investment
- Loan drawdowns
- Tax refunds
- Other income
Cash out
- Payroll and payroll taxes
- Rent and utilities
- Supplier and inventory payments
- Loan repayments
- Insurance
- Software subscriptions
- Sales tax / VAT
- Income tax installments
- Owner drawings
Most small businesses that run out of cash were profitable on paper. The problem is timing: customers pay 30 or 45 days after you invoice, while payroll, rent and suppliers want paying now. A cash flow forecast shows the gap before it reaches your bank account.
Why small business cash flow is hard to see
A small business rarely has one big cash problem. It has lots of small timing differences that stack up in the same few weeks:
- Invoices paid late. Terms say 30 days; many customers pay in 40 to 50. Every week of delay is cash you’ve earned but can’t spend.
- Lumpy bills. Quarterly sales tax or VAT, annual insurance and equipment purchases land in single weeks and can wipe out a month’s margin.
- Owner drawings. Paying yourself the same amount every month while income swings is one of the most common causes of a squeeze.
- Growth. Taking on a big new customer means paying for staff and stock weeks before their first payment arrives.
A worked example
A consulting and supplies business has $25,000 in the bank at the start of October. It invoices about $40,000 a month and spends about $38,000.
| October | November | December | January | |
|---|---|---|---|---|
| Opening balance | 25,000 | 22,300 | 30,050 | 34,650 |
| Cash in | 41,700 | 48,650 | 49,850 | 32,950 |
| Cash out | 44,400 | 40,900 | 45,250 | 49,850 |
| Closing balance | 22,300 | 30,050 | 34,650 | 17,750 |
December looks comfortable. But January combines a quiet sales month, a quarterly tax payment and a planned equipment purchase, and the balance drops by almost half. Seeing that in October gives the owner three months to chase invoices harder, move the equipment purchase or line up an overdraft.
How to build your forecast
- Enter today’s bank balance across all business accounts.
- List expected receipts in the week or month they will actually arrive, using how your customers really pay, not your stated terms.
- List every payment, including the quarterly and annual ones.
- Set a minimum cash buffer, typically four to eight weeks of fixed costs.
- Look for the lowest closing balance, then update the forecast with actual figures every week or month.
Use a 13-week weekly view to manage the next quarter, and a 12-month monthly view for planning hires, purchases and loans. Our 13-week cash flow forecast guide explains when weekly detail matters.
Mistakes to avoid
Don’t record sales on the invoice date. Don’t forget tax you’ve collected on behalf of the government, because it isn’t your money. And don’t build one forecast and file it away: the value comes from updating it and comparing it with what actually happened.
What the template gives you
The Small Business template starts with the cash lines above already in place, plus a collections tab that turns what you invoice into what you’ll actually collect, based on how quickly customers pay. Switch between expected, best and worst case in one click, and track actual results against the forecast month by month. Not sure you need all that yet? Start with the free 12-month template.
Key assumptions built into the Small Business template
- The Collections tab turns what you invoice into cash actually collected for “Invoice collections”. The example assumes 25% is paid in the month invoiced, 55% the following month and 17% two months later. Invoices sent before the start date are entered separately so the first months are right, and anything never collected shows as bad debt, so you can see what slow payers cost you.
- 6 cash in lines and 9 cash out lines are already named for small business businesses, and every one can be renamed or extended. Loans and investment (owner investment and loan drawdowns) are kept out of the runway calculation and don’t grow automatically in the 3-year outlook.
- The example figures follow a typical small business year, busiest in December and October and quietest in January and February, so the tight months show up where they usually fall.
Every assumption sits in a yellow input cell, so you replace the example with your own numbers in minutes. The same figures flow through a 13-week weekly view, a 12-month monthly view and a 3-year outlook, and a dashboard shows your lowest balance, the weeks that fall below your minimum buffer and your cash runway.
Free or premium?
If you only need the basics, the free 12-month template or the free 13-week template will get you started today. The premium Small Business template saves the setup time and adds the tabs above, best and worst case scenarios, and an actual vs forecast tracker that shows where your forecast was wrong, so next month’s is better.
Small Business cash flow forecasting: questions
What should a small business cash flow forecast include?
Your opening bank balance, every expected receipt in the period it will arrive, every payment including quarterly tax and annual bills, and the closing balance for each week or month.
How far ahead should a small business forecast cash?
Forecast 13 weeks ahead in weekly detail and 12 months ahead monthly. Lenders often ask for both.
How much cash should a small business keep in reserve?
A common rule is four to eight weeks of fixed costs such as payroll, rent and loan repayments. Businesses with seasonal or lumpy income need more.