Example cash flow projection
A cash flow projection allows you to predict incomings and outgoings to estimate how much money you’ll have in the future.
Reading the results
Here's where you subtract costs from your available cash to see how much money you'll have in the bank at the end of each period.
Tips for filling out a cash flow projection
Owner’s contribution is any personal money you put into the business. Owner’s drawings are any amounts you took out for personal use. Only fill out the ‘Money from loans’ row if newly borrowed money hits your account during the period. Don’t put existing loans in there.
Some costs can go in multiple places. Car insurance could go under insurance or vehicles, for instance. Don’t sweat on the decision too much. Just stay consistent once you’ve made a call.
Want to borrow this template?
If you like the format of the cash flow forecast in this example – we can send it to you as a template.
You don’t have to fiddle about with spreadsheets. Online accounting makes forecasting a lot simpler.
How to read a cash flow projection
The numbers to watch.
- Net cash flow – shows whether you’ll be putting money in the bank, or scrambling to meet costs.
- Closing balance – a negative amount suggests you may need to delay expenditures if you can, or sort out some kind of finance.