Profitable businesses still run out of cash. The difference between the two is timing: customers pay late, suppliers want paying now and tax bills arrive on their own schedule. A basic forecast turns those surprises into decisions you can make in advance.
Think in weeks, not months
A thirteen-week view — one quarter — is short enough to be accurate and long enough to act on. List expected cash in and cash out for each week, starting from today’s bank balance.
Be honest about timing
Record when customers actually pay, not when you invoice. Most forecasting errors come from optimism about receipts, so base assumptions on the last few months of real behaviour.
Update it every Friday
Replace forecasts with actual figures each week and roll the window forward. Fifteen minutes of routine will show a shortfall weeks before it happens, while there is still time to chase invoices or arrange credit.
Key takeaways
- Think in weeks, not months
- Be honest about timing
- Update it every Friday
