A cash flow forecast shows when money is expected to enter and leave your business account. A 13-week view is useful because a profitable month can still contain a week when payroll and supplier bills arrive before customer payments. The purpose is to identify that timing gap before choosing a funding amount.
Start with cash you can actually use
Use the available opening bank balance, then identify pending payments, restricted funds, and amounts already committed. Do not count an invoice as cash simply because you have issued it. Place each expected customer payment in the week you realistically expect to collect it. Separate confirmed receipts from estimates so you can see how much of the forecast depends on assumptions.
Create one column for each week. Under receipts, separate customer collections from owner contributions and financing proceeds. Under payments, include inventory, payroll, rent, taxes, insurance, subscriptions, and existing financing obligations. A financing deposit may increase cash, but it is not operating sales.
Carry each closing balance into the next week
The basic calculation is opening cash plus receipts minus payments equals closing cash. For an illustrative week, $12,000 opening cash plus $18,000 collections minus $25,000 payments leaves $5,000. If your chosen minimum operating buffer is $8,000, that week has a $3,000 buffer shortfall. The buffer is your planning assumption, not a universal requirement.
Repeat the calculation across all 13 weeks. Look for the lowest projected balance, not just the final one. A forecast that ends with plenty of cash can still hide an earlier shortfall. Record the dates behind large payments so moving a bill between weeks does not accidentally make it disappear.
Test a slower-collection scenario
Duplicate the forecast and move an uncertain customer payment two weeks later. Leave fixed bills on their actual due dates. Then consider a reasonable sales reduction or an unexpected repair. These scenarios are planning exercises, not predictions. Their value is showing which obligations become difficult when collections arrive late.
If you add a potential funding offer, enter its net deposit and every expected payment or remittance on the relevant dates. A cash injection can solve the first gap while creating a later one. Do not judge affordability from the deposit alone.
Turn the forecast into a weekly routine
Choose a consistent review day. Replace the completed week's estimates with actual receipts and payments, explain material differences, and add a new thirteenth week. Assign someone to confirm overdue invoices and upcoming large bills. Keep an unchanged prior version so you can learn whether your assumptions are consistently optimistic.
Before applying, use the forecast to describe the amount needed, the date it is needed, and the operating cash expected to support the obligation. If the downside case never recovers, review costs, collections, and the business plan before relying on additional financing. An accountant can help reconcile the forecast with your bookkeeping.
Frequently asked questions
Is a cash flow forecast the same as a profit-and-loss statement?
No. A cash forecast follows expected cash dates. A profit-and-loss statement measures revenue and expenses under your accounting method, which may recognize items before cash changes hands.
Should funding proceeds appear as sales?
No. Show financing proceeds separately from customer collections, and include the related future payments or remittances.
How often should I update the forecast?
A weekly update keeps the rolling 13-week view useful. Review sooner when a major receipt, expense, or funding assumption changes.
Further reading
SBA: Managing business finances provides additional background. Examples on this page are illustrative planning exercises, not offers or forecasts of business results.
Discuss your funding plan
Bring your use of funds, timeline, and current business information to the conversation. Availability, pricing, approval, and funding timing depend on the program and underwriting.