Each project arrives with its purpose, milestones and first tasks written out. Here is how the first three read.
Opening cash position across every account
A forecast that starts from the wrong number is wrong every week after. Before any forecasting, list every bank account, savings pot, card, payment processor balance and overdraft the business holds, with today's balance and who can see it, so the opening position is one figure you can prove from statements.
First tasks
- List every bank, savings, card and payment processor account the business holds
- Download each account's balance from the bank on the same day
- Note overdraft and facility limits in a separate column from cash
- Agree the single opening cash figure and write the date beside it
Choosing a weekly or monthly forecast horizon
Weekly forecasts over thirteen weeks catch the payroll, rent and tax dates that a monthly view smooths away, while a monthly twelve-month view suits planning and lender conversations. Deciding which one to run first, based on how close cash has come to running out, avoids building a model too coarse to warn you or too detailed to keep up.
First tasks
- Find the lowest bank balance of the last six months from statements
- Work out how many weeks of fixed costs that lowest balance would have covered
- Choose the horizon and period length and note why
- Name who owns the forecast and the day it is updated
First 13-week cash flow forecast
The 13-week forecast is the standard tool for seeing a cash shortfall a quarter before it arrives. Building the first version, with receipts and payments by week running from the opening balance to a closing balance, turns scattered knowledge of who owes what into a single line that shows when cash dips below the level you can live with.
First tasks
- Set up thirteen weekly columns starting from next Monday
- Enter the verified opening cash figure in week one
- Add receipts and payments lines grouped into categories
- Highlight the lowest closing balance and the week it falls in
