Cash flow forecasting guides
Plain-English answers, worked examples and step-by-step builds. Free to read, free to share.
Cash flow basics
Cash Flow vs Profit: Why Profitable Businesses Run Out of Cash
Profit is income minus expenses when they are earned and incurred; cash flow is money actually entering and leaving the bank. They differ because cus…
5 min readCash Flow Forecast vs Cash Flow Statement: The Difference Explained
A cash flow statement is a historical financial statement that reports how cash changed over a past period, grouped into operating, investing and fin…
4 min readCash Flow Forecast vs Budget: Which Do You Need?
A budget sets financial targets for a period, usually a year, recording income when earned and costs when incurred. A cash flow forecast predicts whe…
4 min readDirect vs Indirect Cash Flow Forecasting
The direct method forecasts cash by listing expected receipts and payments line by line. The indirect method starts from forecast profit and adjusts…
4 min readCash Flow Forecast Example: 3 Worked Examples for Small Businesses
A cash flow forecast example shows opening balance, cash in, cash out and closing balance for each week or month. The three examples here, a service…
5 min readWhy Cash Flow Forecasting Is Important: 7 Reasons
Cash flow forecasting is important because it shows shortfalls weeks or months before they happen, turns decisions such as hiring and buying into evi…
4 min readShort-Term vs Long-Term Cash Flow Forecasting
A short-term cash flow forecast covers the next few weeks to three months, usually weekly, and manages liquidity: which bills can be paid and which i…
4 min readWhat Is a Cash Flow Forecast? A Plain-English Guide with Examples
A cash flow forecast is a projection of the cash a business expects to receive and pay out over a future period, usually 13 weeks or 12 months. It st…
6 min read
How-to guides
How to Make a Cash Flow Forecast in Excel (Step by Step)
To make a cash flow forecast in Excel, set up one column per week or month, add rows for opening balance, cash in lines, cash out lines, totals, net…
5 min readHow to Create a Cash Flow Forecast in Google Sheets
To create a cash flow forecast in Google Sheets, lay out months across the columns and cash in and cash out lines down the rows, make each opening ba…
5 min readHow to Forecast Cash Flow for a New Business with No History
To forecast cash flow for a new business, list start-up costs and when you pay them, build sales from the bottom up using capacity, prices and a slow…
5 min readHow to Build a Rolling Cash Flow Forecast
A rolling cash flow forecast is updated at the end of every period and extended by one period, so it always looks the same distance ahead, typically…
4 min readHow to Forecast Accounts Receivable Collections
To forecast accounts receivable collections, start from your aged receivables list, place each invoice in the week or month that customer usually pay…
4 min readHow to Do Variance Analysis on Your Cash Flow Forecast
Cash flow variance analysis compares actual cash in and out with what you forecast, line by line, for each week or month. Calculate the difference in…
4 min readHow to Improve Cash Flow Forecast Accuracy
To improve cash flow forecast accuracy, forecast receipts from how customers actually pay, build lines from real drivers such as volumes and rates, i…
4 min readHow to Present a Cash Flow Forecast to Your Bank
To present a cash flow forecast to your bank, show 12 months month by month (and 13 weeks weekly if cash is tight), include the loan or facility and…
4 min readHow to Make a Cash Flow Forecast in 7 Steps (with Free Template)
To make a cash flow forecast, choose weekly or monthly periods, enter today’s bank balance, list expected cash in by the date it will arrive, list ex…
5 min read
Template guides
12-Month Cash Flow Forecast Template: Free Download and Guide
A 12-month cash flow forecast template shows your opening balance, expected cash in and cash out, and closing balance for each of the next twelve mon…
5 min readWeekly Cash Flow Forecast Template: When and How to Use One
A weekly cash flow forecast template shows expected receipts, payments and bank balance for each week, usually for the next 13 weeks. Use it when cas…
5 min readMonthly Cash Flow Forecast Template: Set Up and Month-End Review
A monthly cash flow forecast template projects receipts, payments and closing bank balance for each month, usually for the next 12. It suits planning…
4 min read3-Year Cash Flow Projection Template for Business Plans
A 3-year cash flow projection shows expected cash in, cash out and closing balance over three years, usually with year one month by month and years t…
4 min readDaily Cash Flow Forecast Template: When You Need One
A daily cash flow forecast shows expected receipts, payments and bank balance day by day, usually for the next two to four weeks. It’s useful when ca…
4 min readSimple Cash Flow Forecast Template for Beginners
A simple cash flow forecast needs only five things for each month: the money you start with, the money coming in, the money going out, the difference…
4 min readCash Flow Forecast Template UK (with VAT)
A UK cash flow forecast should show VAT, PAYE and corporation tax or self assessment payments in the months they are actually paid. VAT collected on…
4 min readCash Flow Forecast Template for a Business Plan: What to Include
A cash flow forecast for a business plan usually covers the first 12 months month by month and years two and three annually. It should include start-…
4 min readBest Free Cash Flow Forecast Templates Compared (and How to Choose)
Free cash flow forecast templates fall into four groups: basic templates built into spreadsheet apps, templates from banks and small business support…
4 min readCash Flow Forecast Template for Excel and Google Sheets: How to Choose One
A good cash flow forecast template for Excel or Google Sheets has an opening balance that rolls forward, editable cash in and cash out lines, weekly…
5 min read13-Week Cash Flow Forecast: What It Is and How to Build One
A 13-week cash flow forecast is a weekly projection of receipts, payments and bank balance over one quarter. Lenders, restructuring advisers and fina…
5 min read
Industry playbooks
Small Business Cash Flow: How to Forecast and Manage It
Managing small business cash flow comes down to a simple routine: a 15-minute weekly check of receipts, payments and the lowest balance ahead, a mont…
4 min readStartup Cash Flow: How to Forecast and Manage It
Managing startup cash flow means knowing your runway every month, tying hiring and spending to milestones, starting fundraising well before cash runs…
4 min readRestaurant Cash Flow: How to Forecast and Manage It
Restaurant cash flow is managed week by week: forecast covers and sales, control prime cost (food, drink and labour) as a share of sales, order and r…
4 min readCafé and Coffee Shop Cash Flow: A Management Playbook
Café cash flow is managed daily and weekly: track takings against forecast, keep cost per cup under control, order beans, milk and food to sales, ros…
4 min readConstruction Cash Flow: How to Forecast and Manage It
Construction cash flow is managed job by job and week by week: forecast each project’s billing and costs, submit payment applications on time, track…
4 min readContractor and Trades Cash Flow: A Management Playbook
Trades businesses manage cash by taking deposits, invoicing the day a job is finished, collecting on the spot from homeowners, keeping parts purchase…
4 min readRental Property Cash Flow: A Landlord’s Management Playbook
Rental property cash flow is managed with a monthly routine: check rent received against the rent roll, act on arrears quickly, plan re-lets before l…
4 min readProperty Development Cash Flow: How to Forecast and Manage It
Property development cash flow is managed project by project: a month-by-month cash plan from land purchase to final sale, equity and loan draws matc…
4 min readNonprofit Cash Flow: How to Forecast and Manage It
Nonprofit cash flow is managed by separating restricted from unrestricted cash, forecasting grant installments and contract reimbursements on their r…
4 min readChurch and Ministry Cash Flow: A Management Playbook
Church cash flow is managed by separating general and designated funds, forecasting giving from past seasonal patterns, planning for summer dips and…
4 min readEcommerce Cash Flow: How to Forecast and Manage It
Ecommerce cash flow is driven by inventory and advertising. Plan stock purchases from sales forecasts and supplier lead times, know how long ad spend…
4 min readSaaS Cash Flow: How to Forecast and Manage It
SaaS cash flow depends on recurring revenue, churn, billing terms and hiring. Track MRR, churn and failed payments monthly, use annual prepaid plans…
4 min readRetail Store Cash Flow: How to Forecast and Manage It
Retail cash flow is managed through stock. Plan purchases with an open-to-buy budget tied to the sales forecast, negotiate supplier terms that match…
4 min readConsulting and Agency Cash Flow: A Management Playbook
Agencies and consultancies manage cash through billing: bill retainers in advance, invoice milestones the day they’re reached, take deposits on proje…
4 min readFreelancer Cash Flow: How to Forecast and Manage It
Freelancers manage irregular income by separating business and personal money, paying themselves a fixed monthly salary from the business account, se…
4 min readMedical Practice Cash Flow: How to Forecast and Manage It
Medical practice cash flow depends on the revenue cycle. Forecast collections from claims by payer and typical payment delay, keep denials low with c…
4 min readDental Practice Cash Flow: How to Forecast and Manage It
Dental cash flow depends on turning production into collections quickly. Collect patient portions at the time of treatment, submit insurance claims p…
4 min readLaw Firm Cash Flow: How to Forecast and Manage It
Law firm cash flow depends on converting work into cash quickly: record time daily, bill promptly, collect within agreed terms, take and apply retain…
4 min readManufacturing Cash Flow: How to Forecast and Manage It
Manufacturing cash flow depends on the cash conversion cycle. Plan material purchases from the production schedule, keep raw materials, work in progr…
4 min readTrucking and Logistics Cash Flow: A Management Playbook
Trucking cash flow is managed load by load and week by week: invoice on delivery with complete paperwork, know how quickly each broker and shipper pa…
4 min readFarm and Agriculture Cash Flow: A Management Playbook
Farm cash flow is managed around the production calendar: forecast input purchases and harvest or livestock sales by month, size operating loans to t…
4 min readHotel and Hospitality Cash Flow: A Management Playbook
Hotel cash flow is driven by occupancy, rate and channel mix. Forecast room revenue from rooms, rate and occupancy by month, account for booking comm…
4 min readEvent Planning Cash Flow: How to Forecast and Manage It
Event planners manage cash through payment schedules. Take deposits on booking and final payments before the event, align vendor deposits with client…
4 min readSalon and Spa Cash Flow: A Management Playbook
Salon and spa cash flow depends on a full appointment book, a sustainable pay model, and controlled retail stock. Track bookings and rebooking weekly…
4 min readGym and Fitness Studio Cash Flow: A Management Playbook
Gym and studio cash flow depends on members. Track members, joiners and leavers monthly, reduce churn and recover failed payments, plan for the Janua…
4 min readLandscaping Cash Flow: How to Forecast and Manage It
Landscaping cash flow is shaped by the seasons. Forecast each service line by month, sell maintenance contracts that bill steadily, take deposits on…
4 min readCleaning Business Cash Flow: How to Forecast and Manage It
Cleaning businesses pay staff weekly while many clients pay monthly or on invoice terms. Manage cash by billing recurring clients in advance or by ca…
4 min readDaycare and Childcare Cash Flow: A Management Playbook
Daycare cash flow depends on enrolment and ratios. Track occupancy by room monthly, collect fees in advance by direct debit, forecast government subs…
4 min readPersonal and Household Cash Flow: How to Forecast and Manage It
Managing personal cash flow means knowing what’s coming in and going out each month, paying savings first, spreading the cost of annual and irregular…
4 min readFranchise Cash Flow: How to Forecast and Manage It
Franchisees manage cash by forecasting royalties and marketing fund contributions on gross sales and their real payment dates, controlling approved-s…
4 min read
Planning & analysis
How to Calculate Cash Runway (and Extend It)
Cash runway is the number of months a business can keep operating before it runs out of cash. Calculate it by dividing cash in the bank by average mo…
5 min readBurn Rate: How to Calculate Gross and Net Burn
Burn rate is how fast a company spends cash. Gross burn is total monthly cash spending; net burn is cash spending minus cash coming in, excluding fun…
4 min readCash Flow Scenario Planning: Best, Expected and Worst Case
Cash flow scenario planning means building several versions of your forecast, usually expected, best and worst case, by changing a few key assumption…
4 min readHow Much Cash Buffer Should a Small Business Keep?
Many small businesses aim to keep a cash buffer of four to eight weeks of fixed costs, such as payroll, rent and loan repayments. Businesses with sea…
4 min readSeasonal Cash Flow: How to Plan for Slow Months
To manage seasonal cash flow, forecast month by month from last year’s pattern rather than an average, find the lowest point before the busy season r…
4 min readWorking Capital Explained for Small Business Owners
Working capital is current assets minus current liabilities: roughly cash, money owed by customers and stock, minus money owed to suppliers and other…
4 min readCash Conversion Cycle: Formula and Examples
The cash conversion cycle (CCC) is the number of days between paying for inventory or inputs and collecting cash from customers. The formula is days…
4 min readHow to Improve Cash Flow: 12 Ways That Work Quickly
To improve cash flow quickly, get paid sooner (invoice immediately, take deposits, chase overdue invoices, offer card or direct debit payment), pay o…
4 min read
Loans & funding
Cash Flow Forecast for an SBA Loan Application
For an SBA loan application, most lenders ask for a monthly cash flow projection for at least the first year and annual projections for two to three…
4 min readWhat Lenders Look for in a Cash Flow Forecast
Lenders use a cash flow forecast to judge whether a business can repay from its own cash flow. They look for realistic, explained assumptions, every…
4 min readCash Flow Projections for Investors: What to Include
A cash flow projection for investors shows how the money you raise will be spent, how long it lasts, and what it achieves. Include monthly cash for a…
4 min read
Comparisons & tools
Spreadsheet vs Cash Flow Software: Which Should You Use?
Spreadsheets such as Excel and Google Sheets suit most small businesses: they’re cheap, flexible and easy to share with lenders. Dedicated cash flow…
4 min readCash Flow Forecasting Tools for Small Business Compared
Cash flow forecasting tools fall into five groups: spreadsheet templates, forecasts built into accounting software, dedicated forecasting apps, FP&A…
4 min read