13-Week Cash Flow Forecast: Step-by-Step Guide

Making profit but looking for cash at the end of the month? Monthly statements show this problem late. A weekly cash forecast shows it weeks earlier.

Step by step

1. Enter the opening balance

Today’s bank balances and available credit limits.

2. Sort collections by due date

Enter them by the week you will actually collect, not by invoice date. Place cheques and notes on their collection date and overdue customers at a realistic expectation.

3. Place payments in weeks

• Salaries, social security and tax payments
• Rent, energy, loan instalments
• Supplier payments and issued cheques and notes

Enter fixed-date payments (salaries, tax, cheques) first. Add those that can be stretched afterwards.

4. Calculate weekly net flow and the cumulative balance

	Wk 1	Wk 2	Wk 3	…
Opening balance
+ Collections
− Payments
Closing balance

Mark the week when the closing balance turns negative. That is the week that needs action.

5. Build three scenarios

• Base: expected
• Pessimistic: important collections are a month late
• Optimistic: some collections come earlier

6. Write the actions

For weeks with a gap: speeding up collections, negotiating payment deferral, additional financing, selling assets. Each action needs a date and an owner.

7. Update every week

Write the difference between actual and forecast. The reasons for variances improve the quality of the next forecast.

Where is it useful?

• To present a concrete plan in talks with banks and creditors,
• To show the ability to pay before debt restructuring,
• For short-term payment plans in concordat and restructuring work.

Used together with the cash flow statement, you follow both the past and the future.

How Denova can help

In our Financial Advisory service we build the cash forecast with you and plan the weekly follow-up and talks with banks.