How to create a cash flow forecast in 4 steps - British Business Bank (2024)

You use a cash flow forecast to predict the cash that’s going out of your business and coming back in over a specific period.

As a result, when creating one of these forecasts, you must make sure it covers a period that’s at least as long as your cash flow cycle.

This is the amount of time it takes cash leaving your business to come back in, hopefully with some profit.

Below, we’ve laid out the four simple steps needed to build your own cash flow forecast.

However, before you go ahead with it, it’s always best to seek advice from a qualified accountant.

Cash flow forecasts are an area of expertise for them, and a good accountant may be able to add insights that you lack.