5 Simple Steps to Create Your Cash Flow Forecast

  1. Project your collections: Review your accounts receivable and capture collection dates for all outstanding invoices
  2. Project cash from new business: Review your sales pipeline, order book and arrive at projected cashflow from confirmed revenue. These can be estimated billing of future months or pending milestones of current projects etc. 
  3. Project additional cash you bring to the business: Effectively this is the end result of cashflow forecast, basis your shortfall you will either fill the cashflow gap through debt or equity funding. 
  4. Project your expenses: You need to project your expenses at least for next 6 months basis the current billing/expected revenue growth and incorporate these projected expenses in the cashflow forecast
  5. Look at your accounts payable for prior period: You need to analyse your balance sheet and understand the completely list of outstanding liabilities which includes business creditors and statutory payable. Incorporate these in your cashflow statement. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Consent to display content from Youtube
Consent to display content from Vimeo
Google Maps
Consent to display content from Google
Consent to display content from Spotify
Sound Cloud
Consent to display content from Sound