Plenty of profitable businesses run out of cash. A customer pays late, VAT and a big supplier bill land in the same week, and suddenly payroll is at risk. A 13-week rolling cash flow forecast is the simplest tool for seeing that coming.
Why 13 weeks
Thirteen weeks covers a full quarter, which means it captures VAT payments, quarterly rent and most seasonal swings. It's short enough to be accurate and long enough to give you time to act.
What goes in it
Start with your opening bank balance. List expected receipts by week, based on when customers actually pay rather than when you invoice. Then list every outgoing: payroll, rent, suppliers, loan repayments, tax. The closing balance each week becomes the next week's opening balance.
Making it a habit
The forecast is only useful if it's updated. Every Monday, replace last week's estimates with actuals and add a new week at the end. It takes twenty minutes once it's set up, and you'll quickly learn which customers and costs you tend to misjudge.
When the numbers look tight
Spotting a shortfall eight weeks out gives you options: chase debtors, agree a payment plan with HMRC, delay a purchase or arrange finance on good terms. Clients on our Growth plan get this forecast built and maintained by Clearwater Accountancy.
Written by
Sophie Grant
Head of Advisory
Former FD who now acts as part-time finance director for growing businesses across the region.
