Why cash flow matters

A profitable business can still face a cash shortage if money arrives later than bills are due. A forecast helps you see timing rather than only accounting profit.

What to put in a forecast

List expected cash receipts and payments by month. Include recurring costs, one-time purchases, debt payments, taxes and realistic sales assumptions. Review actual results against the forecast.

How often should you update it?

Monthly is a useful minimum for many small businesses. Update the forecast when major assumptions change, such as a large customer, new hire or equipment purchase.

Related template

12-Month Cash Flow Forecast

Projects cash coming in and going out over 12 months, so you can spot an upcoming shortfall before it happens and plan around seasonal or uneven revenue.

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