Cash Flow Forecast
Project cash in and out over the coming months so the operator can see runway and act before it is a problem.
When to use
- Monthly, to refresh the forecast with actuals.
- Before a hiring, spending, or fundraising decision.
Steps
- Start from the reconciled closing cash balance.
- Project receipts by client and timing, not just a total.
- Project outflows: payroll, vendors, taxes, and one-offs.
- Compute the running balance and the month runway hits zero.
- Model one or two scenarios and the levers that move runway.
Output
A rolling month-by-month forecast with runway, a base and a downside scenario, and the levers that change the picture. The operator decides what to do.