13-week cash flow forecast: example and weekly review.

Start with reconciled cash, not a profit target

Record the available opening cash at a defined date and reconcile it to the relevant accounts. Show restricted cash separately where applicable. An unused credit facility is not a bank balance: identify its availability and conditions before treating it as a possible funding source. Then create one column for each week and separate receipts, operating payments, tax, investment and financing movements.

Put receipts into the week they are expected

Use realistic collection assumptions, not simply invoice dates. Review overdue balances with the person handling customers. Distinguish contracted receipts from pipeline sales and record who supplied each assumption. If a major payment is uncertain, keep it visible and test a later date instead of quietly moving it to the week needed to make the forecast positive.

Do the same for payments: payroll, supplier commitments, rent, tax, pensions and loan payments each need their expected timing. Avoid double-counting payroll by adding both gross wages and all employee deductions as separate cash costs. Ask the payroll team to confirm the payment schedule and employer costs.

A three-week illustration of the mechanics

Closing cash is opening cash plus receipts less payments. The next week starts with the previous closing balance. If the £10,000 receipt moves from week two to week three, week-two closing cash falls to £5,000 even though week-three closing cash returns to £20,000. A later period-end total hides that earlier pressure. This is an illustration, not a forecast for your business.

Test the commitments that could expose a gap

Model the effect of a delayed customer receipt, lower sales or an unexpected payment. Compare the lowest forecast balance with the cash needed for existing obligations and the buffer management wants to protect. A positive balance does not automatically mean the business has enough headroom. Weekly totals can also conceal a shortfall within the week, so use daily detail where a decision requires it.

Show an unfunded gap as a gap. Do not assume an overdraft, new loan or postponed tax payment is available. Any funding or changed payment terms require an appropriate discussion and confirmation.

Run a weekly forecast-versus-actual meeting

Replace the completed week with actual receipts and payments, explain material differences and add a new week at the end. Review overdue collections, upcoming large payments and changes to assumptions. Assign an owner and date to each action. The forecast becomes a management routine rather than a file that stays unchanged until cash runs short.

A fractional CFO can help establish the forecast and the review process. If your need is one defined deliverable, discuss a scoped cash forecasting engagement; if cash connects to recurring hiring, pricing and growth decisions, an ongoing leadership brief may fit better.

Questions answered

Is 13 weeks always enough?

No. Plan at least as far as the relevant cash cycle and decision need. A near-term weekly forecast can sit alongside a longer monthly model.

Does a positive closing balance mean we can spend the money?

Not automatically. Compare the balance with upcoming commitments, restricted funds and the required cash buffer, and consider timing within each week.