This free cash flow forecast template plans a UK small business’s bank balance for the next 12 months. Enter your opening balance and the cash you expect to receive and pay out each month, and it works out net cash flow and the closing balance for every month, so you can see a shortfall coming before it happens.
What goes into a cash flow forecast?
The forecast has two blocks, each with its own monthly total.
- Cash in: sales receipts, other income, loan proceeds, VAT receipts and other cash in.
- Cash out: purchases / cost of sales, wages / salaries, rent, utilities, VAT payments, loan repayments and other cash out.
Net cash flow is cash in less cash out. The closing balance carries forward as the next month’s opening balance. A Total column sums each line for the year, and the tiles at the top show total cash in, total cash out, net cash flow and the month 12 closing balance.
Building a realistic forecast
- Start with what you know. Regular costs such as rent, wages, loan repayments and subscriptions.
- Add expected income. Use realistic payment timings, not invoice dates. If customers pay on 30-day terms, a March invoice is April cash.
- Add the big one-offs. Equipment purchases, insurance renewals, VAT payments and tax bills.
- Review monthly. Replace forecasts with actual figures as each month closes, and extend the view as needed.
Do not forget tax payments
Self Assessment balancing payments and payments on account fall due on 31 January and 31 July, and VAT-registered businesses pay VAT after each return. These are some of the largest single payments a small business makes, so put them in the forecast as soon as you know the amounts. The self-assessment tax calculator can help estimate them. For a closer, week-by-week view of the next quarter, use the 13-week cash flow forecast.
