Cash flow guide
Cash flow planning: see the shortfall weeks before it arrives
Profit tells you how the business did. Cash tells you whether it can pay on Friday. This guide and a free 13-week planner show you the next quarter, week by week.
Why a profitable business can still run out of cash
Profit counts a sale when you make it. Cash counts it when the customer pays. In between sit late payers, upfront costs, tax bills, loan repayments and what the owner draws. Any of them can empty the bank while the profit figure still looks healthy.
That gap is where owner-led businesses get caught. The fix is not a better accountant’s report after the quarter ends. It is a simple forecast that looks forward, weekly.
How to do a 13-week cash flow forecast
1. Start with the bank balance
Use today’s actual balance, not an estimate. Everything else builds from it.
2. List the cash coming in, week by week
Enter each expected receipt in the week it will actually land, not the week you invoice. Be realistic about how long your customers take to pay.
3. List the cash going out, week by week
Include payroll, suppliers, rent, tax, loan repayments and what you draw yourself. Put the large irregular payments in the weeks they fall due.
4. Read the lowest point
The number to watch is the lowest projected balance and the week it happens, not the closing figure.
5. Decide what to do, early
If the low point is uncomfortable, you have weeks to act: chase invoices, move a payment, adjust spending or arrange funding calmly, not in a crisis.
6. Update it every week
Swap forecast for actual, roll forward one week and look again. The habit is worth more than the first version.
What is in the free planner
An Excel workbook with six sheets: a Start here guide, an Inputs sheet for your opening balance and regular payments, the 13-Week Forecast, a Summary with your lowest balance and a chart, a filled-in Example so you can see how it works, and a Next step sheet.
Choose your currency (NZD, AUD, USD or GBP) on the Inputs sheet and every amount, symbol and message updates. Then enter your numbers once and the forecast, the low-point warnings and the chart update themselves. The Summary also asks the questions that matter next, including where the money actually goes.
Free download
Get the 13-week cash flow planner
Excel workbook with a worked example and a currency choice of NZD, AUD, USD or GBP. No email required.
Cash flow planning questions, answered
What is cash flow planning?
Cash flow planning is forecasting the money that will actually move in and out of your bank account over a set period, so you can see shortfalls before they arrive. It is different from profit, which can look healthy while cash runs short.
What is a 13-week cash flow forecast?
A 13-week cash flow forecast projects your bank balance week by week for one quarter. It is short enough to be accurate and long enough to give you time to act, which is why it is the standard tool for businesses watching their cash closely.
How often should I update my cash flow forecast?
Weekly. Replace the forecast with the actual figures for the week just ended, then roll the forecast forward so you always see thirteen weeks ahead.
Why does a profitable business run out of cash?
Because profit counts a sale when you make it, and cash counts it when the customer pays. Slow payments, upfront costs, tax, loan repayments and owner drawings can all drain the bank while the profit and loss statement still looks good.
Is the cash flow planner free?
Yes. It is a free Excel workbook with a worked example, and there is nothing to sign up for. It is a general planning aid, not financial advice, and using it without our consultancy does not make Nesko Partners liable for any incorrect use of it.
Can you help me read my cash flow?
Yes. Where does the money actually go is the first of our four questions. A confidential conversation is the easiest way to talk it through.
Can I use my own currency?
Yes. Choose New Zealand dollars, Australian dollars, US dollars or British pounds from the list on the Inputs sheet and every figure updates.
Planning the whole business, not only the cash? Read how to write a business plan or take the ten-minute Business Health Check.
Let’s talk
Do the numbers look different from what you expected?
Talk it through in confidence. Where the money actually goes is the first thing we look at, and a conversation costs nothing.