Simple Cash Flow Forecast Template

Decide on the time frame for the cash flow forecast. This will help in identifying short-term and long-term financial goals, assessing the impact of seasonality or cyclical patterns, and planning for future investments. How far into the future do you want to project the cash flow?

Recognize all the potential sources of revenue for the business. This step ensures that the forecast includes all possible income streams and provides a comprehensive overview of the expected cash inflows. What are the different revenue sources for the business?

Predict the amount of revenue that the business is expected to generate during the forecast period. This estimation depends on various factors such as market conditions, historical data, industry trends, and sales projections. What is your forecasted revenue for each revenue source?

Identify the fixed expenses that remain constant regardless of the business activities or sales volume. These costs include rent, salaries, insurance, utilities, etc. Understanding fixed costs helps in determining the breakeven point and evaluating the financial stability of the business. What are the fixed costs of the business?

Estimate the amount of money required to cover the fixed costs. This involves determining the monthly or periodic expenditure for each fixed expense item. Accurate estimation of fixed costs helps in making informed financial decisions and setting realistic targets for revenue generation. What is the estimated cost for each fixed expense?

Identify the expenses that vary with the business activities or sales volume. Variable costs include raw materials, shipping costs, sales commissions, etc. Recognizing variable costs helps in understanding the cost structure of the business and determining the impact of sales fluctuations on the cash flow. What are the variable costs associated with the business?

Estimate the amount of money required to cover the variable costs. This estimation depends on the sales volume, production quantity, or other relevant metrics. Accurate estimation of variable costs helps in evaluating the profitability of different products or services and making pricing decisions. What is the estimated cost for each variable expense?

Calculate the total costs by summing up the fixed costs and variable costs. Understanding the total expenses incurred by the business aids in determining the breakeven point, evaluating profitability, and managing cash flow effectively. What is the total cost for each expense category?

Subtract the total costs from the total revenue to determine the net cash flow. This calculation represents the profitability of the business during the forecast period and helps in assessing the financial stability. What is the net cash flow?

Compute the net cash flow by considering all the cash inflows and outflows. This involves adding or subtracting various items such as revenue, operating expenses, taxes, loans, etc. Understanding the net cash flow assists in budgeting, investment planning, and ensuring sufficient funds for operations. What is the net cash flow?

Calculate the cumulative cash flow by adding or subtracting the net cash flow to/from the previous period's cumulative cash flow. This calculation helps in tracking the trend of cash flow over time and identifying periods of cash surplus or deficit. What is the cumulative cash flow?

Identify any one-off expenses that are not part of the regular fixed or variable costs. These expenses are often unplanned or occasional and can significantly impact the cash flow during the forecast period. What are the one-off expenses?

Add the one-off expenses to the total costs to get an accurate representation of the cash flow. Considering these additional expenses helps in estimating the financial impact of unexpected events or investments. What is the total cost with one-off expenses included?

Recompute the net cash flow by subtracting the total costs (including one-off expenses) from the total revenue. This revised calculation takes into account the additional expenses and provides a more accurate depiction of the cash flow. What is the net cash flow considering the one-off expenses?

Recompute the cumulative cash flow by adding or subtracting the net cash flow (including one-off expenses) to/from the previous period's cumulative cash flow. This revised calculation reflects the impact of the additional expenses on the cash flow trend over time. What is the cumulative cash flow considering the one-off expenses?

Create a summary of the cash flow by consolidating all the relevant information. This summary provides an overview of the forecasted revenue, estimated costs, net cash flow, and cumulative cash flow. What are the key highlights of the cash flow summary?

Prepare a comprehensive cash flow forecast report for internal or external stakeholders. This report includes all the details of the cash flow forecast, analysis of the financial situation, recommendations for improvement, and any other relevant information. Who will be the recipient(s) of the cash flow forecast report?