Cash flow forecast example

Follow this example of a cash flow forecast to create your own. A cash flow forecast will help you see when your business will be flush with cash, and when it won’t.

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Example cash flow statement

A cash flow forecast starts with a prediction of income and outgoings, then adds them together to estimate how much money you will have in the future.

Cash flow forecast example shows rows for money coming in, followed by a total. Then rows for money going out, followed by a total. These numbers are reconciled at the bottom to show net cash flow in or out.

Reading the results

Here's where you subtract costs from income to see how much money you'll have in the bank at the end of each period.

Cash flow forecast results show total cash in minus total cash out to give you a net cash flow and a closing balance.

Tips for filling out a cash flow forecast

Owner’s contribution is any personal money you put into the business. Owner’s drawings are any amount 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.

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If you like the format of the cash flow forecast in this example – we can send it to you as a template.

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How to read a cash flow forecast

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.

Look at the cash flow forecast example above to see all this in action.