Cash‑flow forecasting 101: simple steps to see around corners
Build a rolling 13‑week cash‑flow forecast and understand the levers that truly move your runway.
A 13‑week cash‑flow is short enough to be accurate and long enough to plan. Start with beginning cash, expected inflows, and committed outflows.
Bucket inflows by customer or channel; bucket outflows by payroll, vendors, taxes, and debt service. Add notes for one‑offs.
Update weekly after the close. Compare actuals to forecast and explain the variance - this is where insight happens.
Use the view to time payables, sequence hiring, and plan tax payments proactively.
Key takeaways
- Clean, audit‑ready books enable faster decisions and better cash control.
- Short, visible processes (like a month‑end checklist) reduce variance and rework.
- Executive summaries turn statements into actions for owners and managers.
How PeakPoint Finance can help
We close your books each month, deliver executive‑level reports, forecast cash‑flow, and plan taxes proactively so there are no surprises. If you’d like help implementing these ideas, we’d love to talk.
FAQs
How often should I update my cash‑flow forecast?
Weekly is ideal for a 13‑week view. Compare actuals to forecast and explain the variance - this is where insight happens.
What belongs in an executive summary?
Highlight revenue and margin drivers, cash position and runway, key variances vs. plan, and the 1–3 actions owners should take next.