Cashflow Forecast Example and Instructions

October 18, 2023

Do you find the profit on your profit and loss statement is evaporating before it hits your bank? Or maybe you are in a cash crunch and don’t know with clarity what steps to take next.

Cash flow is the lifeblood of any business. The effective management of your cash flow can spell the difference between business success and failure. Among the many tools available to businesses, the 13-week cashflow forecast stands out for its specificity and actionable insights. 13-weeks represents one quarter which will give you enough time to deal with issues while still being able to project reasonably accurate numbers at a granular level. In this expanded guide, we'll explore the significance of the 13-week cash flow forecast by walking you through how to prepare one for yourself so that you are prepared to make solid decisions in your business. Feel free to get a copy of our template by filling out the form below:


Note: It often takes a couple weeks to dial in the cash flow forecast so don’t be surprised if you don’t get it right on the first try. As we all know business doesn’t always go as planned so a cash flow forecast is about avoiding major risk and getting a handle on cash flow rather than trying to perfectly tell the future through a crystal ball.


In the excel cashflow forecast model you will need to update all the light green cells which includes the following steps:

  1. Fill out your company name and date
  2. Set your cash target. (If you don't have one start with 3 months expenses and adjust as required)
  3. Cash inflows section
  4. Cash outflows section
  5. Account receivable section
  6. Account payable section
  7. Rinse and repeat - Update on a weekly basis

Now that you have filled out your cash flow forecast you want to take a look at the opening balance and make sure it is never dipping below your cash target (you don't want red numbers). Some steps you may need to take:

  • Increase your marketing and sales activity or find new channels
  • Make collections calls
  • Make it easier for customers to pay
  • Collect deposits up front
  • Get financing
  • Lay-off employees (hopefully not!)
  • Get in touch with Foundation Accounting

Keeping your cash flow forecast up to date is critical to avoiding major risk, making solid decisions and become more fluent in the language of business.

Happy Business Building!

About Foundation Accounting Ltd.

Foundation Accounting provides integrated bookkeeping, accounting and CFO services to small business owners and individuals in British Columbia, Canada. The firm was founded to help small business owners and individuals gain financial clarity to make better decisions and minimize financial stress in their life. We are here to support small businesses each and every day.

Are you looking to gain clarity and remove financial stress from your life? Get a quote today.

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