Cash Flow Forecast Template

Cash flow is the increase or decrease in the amount of cash a business, company or individual is holding. In terms of business and finance, it refers to the activities of a company that can generate or spend cash in a given period. The cash flow forecast is very important in planning and analyzing the performance of the company.

Cash is the most important commodity for any business. After all, companies operate to generate cash and invest in assets. The money that a company earns from customers can be spent on expenses and salaries. Some businesses are more cash-oriented than others. In such situations, having a cash flow analysis can help to understand the cash position of the company in the present and for the future as well.

Cash Flow Forecast Template


[For Excel: xlsx & Polaris Office] [Size: 15.0 KB]


[OpenDocument Spreadsheet .ods] [Size: 30 KB]

Lack of cash or even loss of cash is one of the major reasons that businesses collapse. Small businesses such as startups fail due to a lack of enough cash reserves. Having a proper cash flow analysis is more important for small businesses and for the businesses which are in their initial phases. A Lot of money is going out at that stage due to first time spending and no sales or cash has been generated. The directors or the business owners will be injecting money in the company at this stage to keep a positive cash flow statement.

Although cash flow analysis is important for every business, it is very essential for seasonal businesses. Businesses that make revenue during specific seasons need to manage their cash flows very consciously. A business can be making a profit but still, have no cash. Now, how is that possible? It can be possible as profit is an accounting concept and cash is a real-time tangible asset.

What is the best way to keep track of the cash reserves of the business? The best way is to use a cash flow analysis. When at the end of the month, the cash flow analysis will represent the cash that was earned and the cash that was spent out. One way of looking at the cash flow forecast is to see the inflows and outflows. Another way of looking at the cash flow is to understand the investment that is made by investors or the owners. Cash flows will be generated by different sources such as investment, operating activities and financing.

Cash flow also assists in other dynamics of the business. Cash flow analysis can be used to help in financial planning and budgeting as well. There are three types of cash flows such as the operating activities, investing activities and financing activities.

Having a positive cash flow is very important for any business and positive cash flow is driven by budgeting and planning. The payments and receivables can be planned well by looking at the cash flow. Negative cash flow represents poor timing in paying the bills and achieving a positive cash flow is not by chance. Companies have to work hard to have a positive cash flow which means that the money earned from the customers is more than the money spent.

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