Averden Advisory · Editorial perspective
A 13-week cash-flow forecast is a week-by-week projection of the cash coming into and leaving your business over the next quarter. Thirteen weeks is long enough to see pressure points coming and short enough to forecast with reasonable accuracy.
Unlike a profit forecast, it tracks actual cash: when customers pay, when wages, rent, tax and suppliers fall due. A profitable business can still run out of cash, and this forecast is how you see that risk in advance.
For example, if the forecast shows a shortfall in week seven, you have six weeks to accelerate collections, agree revised supplier terms or arrange funding, rather than discovering the gap on the day.
To build one, start with your current bank balance, list expected receipts by week based on real debtor behaviour, then list every payment by its due date. Update it weekly and compare forecast against actuals so it stays honest.
If the forecast shows a persistent shortfall you cannot close, take independent professional advice promptly. This article is general information, not personalised advice.
This article is general information and is not legal, financial or insolvency advice. Please seek advice on your specific circumstances.
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