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