It's vital to monitor your cash flow in business. Using a cash flow forecast can help you plan ahead for the good times and bad.
Tips for completing your cash flow forecast template:
1. Try to be as accurate as possible with your figures. At the bottom of the template, make detailed notes on the assumptions you've made in your forecast.
2. If you invoice $100,000 of sales in a month, you can’t guarantee the full amount will be paid on time. For example, you might estimate 80% of invoices are paid in the month of billing, 10% a month later, and 10% two months later.
3. Don't forget one-off items like accounting fees and your tax obligations – many businesses struggle to find the cash to pay taxes when they’re due.
Steps for completing the forecast:
1. Enable Macros and expand the grouped rows (the + on the far left)
2. Enter the opening bank balance for the relevant month you are commencing this template
3. Enter Monthly Revenue
4. Enter Monthly Costs
5. Review the Summary
It’s always a good idea to run your figures past a business adviser before presenting your cash flow forecast to outside readers, such as potential lenders or investors.
This download is a basic business tool that should be used as a guide only. It does not take into account your business' unique circumstances. If you would like a detailed, weekly stepped and tailored cash flow forecast or an integrated (three-way) forecast please contact our team firstname.lastname@example.org
This document is intended to provide general information only and should not be relied upon in substitution for professional legal or financial advice. Whilst due care has been taken in preparing the document, no warranty is given as to the accuracy of the information contained in the document. The accuracy of the output from the document is subject to the accuracy of the information you provided. Aurelius Advisory will not store the information provided in the document. To the extent permitted by law, no member of Aurelius Advisory shall be liable to any person for any error or omission contained in the document or for any loss or damage suffered by any person relying on the information contained in the document.