Overview
Profitable businesses can still run short of cash when collections slow down or inventory builds up. Cash flow forecasting shows expected receipts and payments week by week or month by month, so funding gaps are seen in advance.
Forecasts also support bank limits, working capital negotiations and investment decisions.
Who needs this service
Businesses with seasonal cycles
Companies seeking or renewing bank facilities
Growing businesses investing in capacity
Legal and regulatory framework
- Not a statutory requirement; lenders often require projections
Scope of services
Forecasting
- Rolling 13-week cash forecasts
- 12-month cash flow projections
Working capital
- Cycle analysis: receivables, inventory, payables
- Improvement actions
Funding
- Funding requirement estimates
- Scenario analysis
How the engagement works
- BaselineCurrent cash position and cycle.
- ModelForecast with assumptions.
- ReviewWeekly or monthly actual versus forecast.
- ActCollection and payment actions.
Documents typically required
Bank statementsReceivables and payables ageingSales and purchase plans
Key forms and due dates
| Item | Timeline |
|---|---|
| Update frequency | Weekly or monthly |
Deliverables
- Cash flow forecast model
- Working capital analysis
- Funding plan
The scope of each engagement is agreed in writing and depends on the nature, size and regulatory requirements of the entity.
Frequently asked questions
What is a 13-week cash flow forecast?
A rolling week-by-week forecast of receipts and payments for the next quarter, updated weekly, used to manage short-term liquidity.