Build a 13-week cash flow forecast in one afternoon

A 13-week (one quarter) cash flow forecast is the most practical liquidity tool for a small or mid-sized business.

How to build it

1. 1Start with today's bank balance.
2. 2List expected receipts week by week: customer collections based on real due dates, not hopes.
3. 3List payments week by week: salaries, rent, suppliers, VAT, zakat, GOSI and other fixed costs.
4. 4Calculate the closing balance for each week and carry it to the next.

Reading it

• Any week below your minimum cash buffer is a warning.
• Big payments clustered in one week can be rescheduled in advance.
• Slow collections show up weeks before they hurt.

Keeping it alive

• Update it every week with actual figures.
• Compare forecast to actual and learn where you were optimistic.
• Roll it forward so you always see 13 weeks ahead.

A spreadsheet is enough to start. The discipline matters more than the tool.