Cash Flow Forecasts in Five Steps

Cash flow forecasting is the Achilles heel of many businesses, particularly in the SME sector.

Elizabeth Mawby, a client director at Vantage Performance, has seen many companies outlining cash flows for only a week ahead. She says, to be of any use, companies need to be looking 13 weeks ahead.

Putting a cash flow forecast together is straightforward. In this edition of the Vantage Performance podcast she takes Phil Dobbie through her five step process, which looks at:

  • Assumptions
  • Sales income
  • Other cash inflows
  • Expenses
  • Building the spreadsheet.

Even if you produce a cash flow forecast regularly, it’s worth 10 minutes listening to Elizabeth’s suggestions, in case you’re missing out a vital ingredient. After all, an inaccurate forecast is next to useless.


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