Cash Forecasting

Cash forecasting is designed to help business owners understand their future cash position so there's no surprise. — Like all forecasting.

Here's Why Your Cash Forecasting Model Doesn't Work

Most templates you download from the internet only factor in sales amount and expenditure - It's pure guessing.

  • How efficient am I collecting my receivable?
  • What’s the reasonable timeframe to collect my invoices (account receivables)? Am I collecting too slow?
  • How many expenses do I expect to pay next month?
  • How long can my business sustain if there’s no new revenue coming in?
  • Can I afford to expand my business?
  • Can I afford to bring in more people? How would that affect my cash flow? What’s my expectation to see the money I spent to return?

Here's Why Your Cash Forecasting Model Doesn't Work

Most templates you download from the internet only factor in sales amount and expenditure - It's pure guessing.

  • How efficient am I collecting my receivable?
  • What’s the reasonable timeframe to collect my invoices (account receivables)? Am I collecting too slow?
  • How many expenses do I expect to pay next month?
  • How long can my business sustain if there’s no new revenue coming in?
  • Can I afford to expand my business?
  • Can I afford to bring in more people? How would that affect my cash flow? What’s my expectation to see the money I spent to return?

Here's Why Your Cash Forecasting Model Doesn't Work

Most templates you download from the internet only factor in sales amount and expenditure - It's pure guessing.

  • How efficient am I collecting my receivable?
  • What’s the reasonable timeframe to collect my invoices (account receivables)? Am I collecting too slow?
  • How many expenses do I expect to pay next month?
  • How long can my business sustain if there’s no new revenue coming in?
  • Can I afford to expand my business?
  • Can I afford to bring in more people? How would that affect my cash flow? What’s my expectation to see the money I spent to return?

I've Budgeted Everything.
Do I Still Need A Cash Forecasting Model?

Questions x Answers

Unlike budgeting, the cash forecasting model is an ever-changing model that needs to be maintained. We put all the assumptions we’ve already known and laid it out to see where we’ll land in the next 30, 60, or 90 days. 

A budget is just an excuse to spend money. As an alternative, the cash forecasting model provides you the assumptions as of today and helps you predict the future. In this lesson, we’ll go over the primary differences, what cash forecasting does, and what stories it tell you. 

The frequency you look at a number should give you enough time to influence that number before you see it again. With that said, we’d recommend entrepreneurs look at their financial forecasts at least once 2-week, but preferably once a month. This would give you enough time to make changes but not so frequently to distract you from what’s more important. Also, make sure you take a look at it for any strategic planning. 

Your accountant/controllers/CFO probably are the ones who maintain your cash forecasting model. However, not exactly. A good cash forecasting model needs to take all the assumptions and laid it out to see where you’ll land in the future. Thus, it requires different departments’ joint efforts since the majority data source will come from each department. 

Questions x Answers

Unlike budgeting, the cash forecasting model is an ever-changing model that needs to be maintained. We put all the assumptions we’ve already known and laid it out to see where we’ll land in the next 30, 60, or 90 days. 

A budget is just an excuse to spend money. As an alternative, the cash forecasting model provides you the assumptions as of today and helps you predict the future. In this lesson, we’ll go over the primary differences, what cash forecasting does, and what stories it tell you. 

The frequency you look at a number should give you enough time to influence that number before you see it again. With that said, we’d recommend entrepreneurs look at their financial forecasts at least once 2-week, but preferably once a month. This would give you enough time to make changes but not so frequently to distract you from what’s more important. Also, make sure you take a look at it for any strategic planning. 

Your accountant/controllers/CFO probably are the ones who maintain your cash forecasting model. However, not exactly. A good cash forecasting model needs to take all the assumptions and laid it out to see where you’ll land in the future. Thus, it requires different departments’ joint efforts since the majority data source will come from each department.

3 Steps Away From Clarity

3 Steps Away
From Clarity

CHOOSE YOUR PLAN

CHECK-OUT

RECEIVE

Select Your Plan

STANDARD

$149

*No financial background needed

  • Basic cash forecasting model
  • Instruction manual
  • 12-month cash projection
  • Free chart of account mapping
  • 30-day unlimited email support
  • One-time payment
  • Giveaway: 25-min Cash Forecasting consultation

CARE-FREE

$249/mo

Recurring

  • Weekly update cash forecasting model
  • Weekly cash forecasting report
  • Advanced cash forecasting model
  • Instructional manual
  • 12-month cash projection
  • 12-month expense assumption
  • 12-month profitability projection
  • 30-day unlimited email support
  • Giveaway: 1hr financial consultation

PRO

$349

*Recommended for financial specialist

  • Advanced cash forecasting model
  • Instructional manual
  • 12-month cash projection
  • 12-month expense assumption
  • 12-month profitability projection
  • 30-day unlimited email support
  • One-time payment
  • Giveaway: 1hr financial consultation

Still Not Convinced?

Sign up for our light version and see for yourself.