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Cash Flow Forecast

Enter your opening cash balance, then add income and expense items with an amount, a start month and how often they repeat. The forecast shows money in, money out and the cash balance for each of the next 12 months, the closing balance and the lowest point. In the example, a business starting with $10,000 ends the year with $20,000, but cash dips to $6,500 in month 3.

Your numbers

Money in and out

Results

Cash after 12 months

$20,000.00

Lowest balance (month 3)

$6,500.00

Net change
$10,000.00
$0$10,250$20,500135791112
Cash
Show the working
  1. Running balancecash(m) = cash(m−1) + in(m) − out(m)

Schedule

Paper and orientation

How to use the cash flow forecast

  1. Enter your opening cash balance.
  2. Add a row for each cash item: name, money in or out, amount, start month and repeat (monthly, quarterly or once).
  3. Read the closing balance, the lowest point and the net change.
  4. Open the table to see money in, money out and cash for each month, and export it as a CSV.

How it works

For each month from 1 to 12, the forecast adds every item that falls in that month: monthly items from their start month on, quarterly items every third month from their start, and one-off items only in their month. Cash at the end of each month = cash at the end of the previous month + money in − money out.

Worked example

Opening cash $10,000; sales of $12,000 a month; payroll $7,000 and rent $2,500 a month; equipment of $8,000 in month 3; quarterly tax of $3,000 starting in month 3.

  • Each normal month adds $2,500.
  • Month 3 has the equipment and the first tax payment, so cash falls to its lowest point of $6,500.
  • The year ends with $20,000, a net increase of $10,000.

Using the forecast

Look first at the lowest point. If it is too close to zero, consider moving a large purchase to a stronger month, asking customers to pay faster, negotiating supplier terms or arranging a credit line in advance. Then update the forecast monthly with actual figures and roll it forward.

Tips

  • Be cautious with income: forecast sales when you expect the cash, not when you invoice.
  • Include tax payments such as VAT, GST and income tax instalments.
  • Plan for seasonality with different amounts in busy and quiet months.
  • Keep a buffer: many businesses aim to hold several weeks of costs in cash.
  • Review monthly; forecasts are most useful when they are kept current.

Scenario planning

Duplicate your main forecast mentally as a “what if”: reduce sales by 20%, delay a big customer payment by a month or add an unexpected cost. If the lowest point turns negative, you know where your risks are and can plan ahead.

Limitations

The forecast covers 12 months with simple repeat patterns. It doesn’t model payment terms, interest, inventory or tax calculations automatically.

Frequently asked questions

What is a cash flow forecast?

A month-by-month plan of the money you expect to receive and pay out, showing your bank balance over time. It helps you spot shortfalls before they happen.

How is it different from profit?

Profit counts income when it is earned and costs when they are incurred. Cash flow counts money when it actually moves. A profitable business can still run out of cash if customers pay late or large bills fall due together.

What does the lowest point show?

The month with the smallest cash balance. If it is negative, you would need a buffer, a credit line or a change in timing to cover it.

How do I enter a one-off payment?

Choose “once” and the month it happens. For quarterly items, choose the first month; they repeat every three months.

Can I save the forecast?

Copy the share link or export the table as a CSV. Nothing is stored on a server.

Sources