How to Forecast Cash Flow (Even If You’re Not a Numbers Person)
One of the most stressful parts of running a small business is not knowing if you’ll have enough money in the bank when bills come due. That’s where cash flow forecasting comes in.
The good news? You don’t need to be a financial expert to build a useful cash flow forecast. With just a few simple steps, you can get clarity on whether you’ll have enough cash to cover expenses — and plan ahead if a shortfall is coming.
What Is a Cash Flow Forecast?
A cash flow forecast is a projection of how money will move in and out of your business over a set period of time — usually the next 30, 60, or 90 days.
It helps answer questions like:
Will I have enough to cover payroll?
Can I afford to pay vendors on time?
Is now the right time to make a big purchase or investment?
Think of it as your financial roadmap.
Why Forecasting Matters
Many small business owners rely on “gut feel” to know if they have enough money. The problem? Unexpected costs, slow-paying customers, or seasonal dips can throw that off quickly.
A forecast helps you:
Avoid surprises – you’ll see problems before they hit.
Plan with confidence – know if you can afford growth or need to hold back.
Build credibility – banks and lenders love to see clear cash flow projections.
How to Forecast Cash Flow in 5 Simple Steps
Start With Your Current Cash Balance
Look at your business bank account today. That’s your starting point.List Expected Cash Inflows
Customer payments
Sales you expect to collect this month
Other income (loans, grants, refunds, etc.)
List Expected Cash Outflows
Rent, utilities, payroll
Vendor bills and subscriptions
Loan payments
Taxes and insurance premiums
Subtract Outflows From Inflows
Add up what’s coming in, subtract what’s going out. The result shows whether you’ll have a positive or negative balance.Look Ahead and Adjust
Repeat this process for the next 2–3 months. If you spot a negative balance in the future, you can act now — collect receivables faster, delay a purchase, or secure short-term financing.
Quick Tips to Make It Easier
Keep it simple — a spreadsheet works just fine.
Update your forecast weekly or monthly.
Always use realistic numbers (not wishful thinking).
Don’t forget to include irregular expenses like quarterly taxes or annual insurance.
The Bottom Line
Cash flow forecasting doesn’t need to be complicated. With a little consistency, it gives you a clear view of your finances and helps you make better decisions with confidence.
If you’d like help setting up a simple cash flow forecast tailored to your business, I’d be happy to guide you.
Schedule a Free Consultation and take the guesswork out of your cash flow.
