Start with available cash, add the receipts you expect to collect each week, and subtract the payments you expect to make. Update the forecast with actual activity every week so it remains a working decision tool.
Start with cash you can actually use
Choose a weekly start date and reconcile the opening balance to your bank records. Show restricted cash separately. A credit line is a potential funding source, not cash already in the account; show draws and repayments explicitly.
Build 13 weekly columns. Use a consistent sign convention: receipts are positive and payments are negative. Ending cash equals opening cash plus receipts minus payments; the next week starts with the previous ending balance.
Forecast collections, not just sales
- List material customer receipts by expected collection date. An invoice date and a payment date are different.
- Review overdue balances with the person responsible for collections. Flag disputed invoices and uncertain payment promises.
- Separate recurring receipts from one-time items. Record the assumption behind a large collection.
Put commitments on the calendar
Schedule payroll, payroll taxes, rent, debt payments, vendor commitments, and other known obligations. Include planned equipment purchases and estimated tax payments where applicable. Separate committed spending from discretionary spending.
Use a base case and a downside case. For example, move a major customer payment back two weeks and see whether payroll and other commitments still fit. This is a planning scenario, not a prediction.
Make the weekly review actionable
- Replace the completed week with actual receipts and payments. Explain significant differences.
- Add a new week so the forecast continues to cover 13 weeks.
- Identify the lowest projected cash balance and compare it with a buffer selected for your business.
- Assign an owner and due date to decisions such as following up on receivables, rescheduling discretionary spending, or discussing funding.
Keep the cash forecast connected to your books
A cash forecast shows timing. It does not replace the income statement, balance sheet, or a longer-term operating plan. A profitable business can still face a cash shortage when collections arrive after payments are due. Reviewing these views together helps separate a timing problem from an underlying margin or operating problem.
Download the weekly cash review checklist
General educational information. This guide does not determine the treatment of your particular tax, accounting, or financial situation. Contact us to discuss the facts and applicable requirements.
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Bring your current cash balance, accounts receivable and payable aging, payroll schedule, and major upcoming commitments. We can discuss a forecast and review routine that fits your business.
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