Cash flow forecast template
A cash flow forecast template for Excel and Google Sheets
A cash flow forecast shows how much cash you will have in the bank in each week or month ahead, based on the money you expect to come in and go out. Below is the layout to use, how to fill it in, a worked example, and the mistakes that make most forecasts wrong.
The basics
What a cash flow forecast is
The question it answers
Will there be enough cash in the account to cover payroll, rent and bills on the dates they are due? A profit and loss report cannot tell you that, because it counts revenue when you invoice, not when the client actually pays.
Forecast vs. budget
A budget is a plan for what you intend to spend. A cash flow forecast is a prediction of what will actually be in your account, period by period, including payments that arrive late.
The formula
Starting cash, plus cash in, minus cash out, equals ending cash. Each period's ending cash becomes the next period's starting cash. That one rule is the whole engine of the template.
The layout
Five rows every cash flow forecast template needs
| Row | What goes in it | Example |
|---|---|---|
| 1. Starting cash | The combined balance of your operating accounts at the start of the period | $42,000 |
| 2. Cash in | Client payments, retainers, deposits and refunds, in the period you expect the money to arrive | $18,500 |
| 3. Cash out | Payroll, contractors, rent, software, loan payments, taxes and owner draws | $21,300 |
| 4. Net cash flow | Cash in minus cash out | −$2,800 |
| 5. Ending cash | Starting cash plus net cash flow | $39,200 |
Put your periods across the top (Week 1, Week 2, Week 3…) and these five rows down the side. Break cash in and cash out into a few lines each, such as one line per client and one per major bill, and total them. Copy that structure into a blank spreadsheet and you have a working forecast.
How to build it
Six steps to your first forecast
Choose weekly or monthly
Use weekly periods if payroll and client payments swing your balance within a month. Use monthly periods for long-range planning.
Enter today's cash
Use the real balance in your operating accounts today, not what your accounting software says clients owe you.
Add cash in by expected date
Place each payment in the period you expect it to arrive. If a client usually pays 15 days late, forecast it 15 days late.
Add cash out by due date
Start with fixed costs such as payroll, rent and software, then add variable costs and one-off items like quarterly taxes or annual renewals.
Find your low point
Scan the ending cash row for the lowest number and the period it lands in. That is the number to manage.
Update it every week
Replace forecasts with actual figures and roll forward one period. A forecast that is not updated quickly turns back into a guess.
Worked example
A 4-week forecast for a small agency
| Week 1 | Week 2 | Week 3 | Week 4 | |
|---|---|---|---|---|
| Starting cash | $42,000 | $39,200 | $35,800 | $15,200 |
| Cash in | $18,500 | $6,000 | $4,000 | $31,000 |
| Cash out | $21,300 | $9,400 | $24,600 | $8,900 |
| Ending cash | $39,200 | $35,800 | $15,200 | $37,300 |
Looked at as a month, this agency seems fine: it starts with $42,000 and ends with $37,300. The weekly view tells a different story. In week 3, payroll and contractor payments go out on schedule while a large client payment slips to week 4, and cash drops to $15,200. If the owner wants a $20,000 cushion, the forecast shows the problem two weeks ahead, while there is still time to chase the invoice or move a bill. All figures are for a fictional business.
Common mistakes
Why most cash flow forecasts are wrong
Forecasting invoices on their due date
Clients pay when they pay. Base each payment on that client's actual history, not the terms on the invoice.
Leaving out irregular costs
Quarterly estimated taxes, annual software renewals, insurance premiums and equipment purchases are easy to forget and large enough to cause a shortfall.
Only looking at monthly totals
A month can end with a healthy balance while one week in the middle goes negative. Payroll and client payments land on specific days.
Confusing profit with cash
Unpaid invoices are not cash, and neither is depreciation. Forecast only money that actually moves in or out of the bank account.
Never updating it
A forecast built once and left alone drifts away from reality within a few weeks. A short weekly update keeps it useful.
Going further
A simple forecast vs. a 13-week cash flow forecast
When a simple template is enough
If your income is steady, your bills are predictable and you keep a large cash buffer, the five-row layout above, updated monthly, may be all you need.
When to use a 13-week forecast
If you run payroll every two weeks, clients pay on different schedules, or you are deciding whether to hire, a weekly forecast that looks one quarter ahead shows the gaps a monthly view hides. See how the 13-week cash flow forecast template works.
Not sure how exposed you are?
The free cash shortfall risk check estimates how much a late client payment could hurt your cash position in a few minutes.
Questions
Cash flow forecast template FAQ
What should a cash flow forecast template include?
Five rows for each period: starting cash, cash in, cash out, net cash flow and ending cash. A good template also makes your lowest balance easy to spot, because that is the number that tells you whether you can cover payroll and bills.
Should I forecast cash weekly or monthly?
Weekly for the next one to three months, especially if you run payroll every two weeks or clients pay on different schedules. Monthly is fine for longer-range planning, but it can hide a week in the middle of the month when cash runs short.
How far ahead should a small business forecast cash?
Thirteen weeks (one quarter) is a common window for short-term decisions, because most of the money coming in and going out is already known. A 12-month forecast is better suited to annual planning and budgeting.
Does this layout work in Google Sheets?
Yes. The five-row layout on this page works in Excel, Google Sheets or any other spreadsheet. Cash Command OS Complete comes as the same workbook for both Microsoft Excel and Google Sheets.
Is there a free cash flow forecast template?
The layout and example on this page are free to copy into any spreadsheet. Cash Command OS Complete is a ready-built 13-week version with late-payment and hiring scenarios, sold as a one-time $199 purchase. You can also try the free cash shortfall risk check.
Skip the setup and see your lowest cash week
Cash Command OS Complete: a ready-built 13-week cash flow forecast for Excel and Google Sheets, with late-payment and hiring scenarios. $199 one-time founding price.