What Is a Cash Flow Forecast and How to Use Our Free Template
- Strength in Numbers
- 5 days ago
- 2 min read
Managing your business finances doesn’t need to be overwhelming. One of the most powerful tools for staying in control is a cash flow forecast—and we've made it easy for you by offering a free template you can download today.
In this blog, we’ll walk you through:
What a cash flow forecast is
Why it’s essential for your business
How to use our downloadable template
What Is a Cash Flow Forecast?
A cash flow forecast is a simple but crucial financial report that predicts the amount of money coming in and going out of your business over a specific period—usually monthly.
It helps you understand:
When you might run low on cash
When you’ll have a surplus
If you’ll have enough funds to cover upcoming costs
Rather than being caught off guard by unexpected bills or slow months, a cash flow forecast helps you plan ahead.
Why Is It So Important?
Many profitable businesses still fail because they run out of cash. That’s the difference between profit and cash flow—profit looks good on paper, but cash flow is what keeps the lights on.
With a forecast in place, you can:
Identify potential shortfalls early
Make informed decisions about expenses or investment
Plan for tax bills, wages, and supplier payments
Gain confidence in your financial direction
Get Started with Our Free Template
We’ve created a user-friendly Cash Flow Forecast Template in both PDF and Excel formats.
How to Use the Template
1. Start with Your Opening Balance
This is the amount of cash you have in your business at the start of the month.
2. Add Your Cash Inflows
These are the funds coming in, such as:
Sales income
Loan or grant money
Other income (e.g., investment, rebates)
3. Enter Your Outgoings
These are all the costs your business pays out, including:
Rent, utilities, and insurance
Staff wages
Payments to suppliers
Taxes and other operating expenses
4. Let the Totals Calculate
The Excel version will automatically total your inflows and outflows and calculate your closing balance for each month. The PDF version can be printed and filled out manually.
5. Review and Adjust Regularly
Update the forecast monthly to stay on top of your financial position and adjust based on new information or changes in your business.
Pro Tip: Use This Forecast to Make Smarter Decisions
Ask yourself:
Can I afford to invest in marketing next month?
Do I need to delay a purchase?
Will I have enough to pay my VAT or corporation tax?
Should I speak to my accountant about financing options?
Need Support?
If you’d like help understanding your forecast or want us to tailor it to your business, get in touch!
At Strength in Numbers Ltd, we help business owners stay in control of their finances and plan for growth with confidence.
Contact us via www.strengthinnumbers.co.uk
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