Guide
How to build a 13-week cash flow forecast you’ll actually use
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Overview
A 13-week forecast shows which week your bank balance could fall short. Move one big customer payment back a week to see whether you can still cover wages.
Build the first two weeks from actual dates
It’s Wednesday. Your sales report looks healthy, a customer owes you $18,000, and wages go out on Friday. The number that matters today is how much cash will be in the bank on payday. A rolling 13-week cash flow forecast gives you a week-by-week answer and enough time to do something about a squeeze.
Start with the available opening bank balance. Put receipts into the week customers are likely to pay, using their payment history. Enter wages, super, suppliers, rent, loan repayments and tax on their expected payment dates. Treat a deposit you’ve already received as part of the opening balance so you don’t count it twice.
Suppose you open with $32,000, expect $18,000 from customers and have $41,000 due out. You expect to close with $9,000. Push that customer receipt back a week and the same business closes $9,000 short. Seeing that gap now gives you time to chase the invoice, discuss supplier terms or change when you order stock.
Give the forecast one job each week
Every Friday, replace estimates with actual bank movements, note the biggest difference and add a new week at the far end. Keep less certain receipts visible in a second scenario. If a decision only works when every customer pays on time, you’ll see the dependency before you commit.
A useful first question for a CFO review is specific. Can you hire in January and still cover February’s wages if the largest account pays late?
