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Improve Your Cash flow: Cash flow forecasting template

by Robert McCallion and Alan Warner

There are a number of ways in which a cash flow forecast can be structured and much depends on the nature of the business and the format of the information available. The following is a typical format for a manufacturing business using typical terminology:
Quarterly cash forecast
Month Month Month Total
1 2 3 quarter
£ £ £ £
Sales receipts including VAT 1,800 1,900 2,300 6,000
Other receipts 30 30
Total receipts 1,830 1,900 2,300 6,030
Cash paid to suppliers 1,080 1,100 1,150 3,330
Wages 400 400 440 1,240
Taxes on wages 100 100 100 300
Dividends – 250 – 250
VAT payments 80 110 130 320
Corporation tax – – 300 300
Capital expenditure 100 – 200 300
Other payments 10 20 – 30
Total payments 1,770 1,980 2,320 6,070
Net cash flow 60 (80) (20) (40)
Opening cash balance 250 310 230 250
Closing cash balance: 310 230 210 210
This forecast assumes a quarterly forecast period; in practice the time ahead will depend on the nature of the business and the extent to which there are cash flow problems. An alternative is an annual forecast that is phased monthly and regularly updated.
The key figures to monitor and to drive action are the opening and closing balances for each month because these are the surpluses or deficits that you will need to discuss with your bank.


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Improve Your Cash Flow: Teach Yourself

Improve Your Cash Flow: Teach Yourself
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