Forecasting Cash Flow

If projected Ending Cash is negative at any point in the future,
do something about it NOW!!

Instructions (Period = week)
  • At the “CASH BALANCES” window, enter the first day of the current  period at the “As of” cell using the format MO/DAY/YR   (08/01/XX)
  • Enter names and balances for all Checking and Savings accounts.  If applicable, also identify Other Cash available.
  • Totals will be calculated automatically and transferred to other sections of the worksheet.
  • Go to the “Six-Week Cash In from Projects” section.
  • Current Projects:
    • Enter at “Project Name” the names of Projects currently under construction.
    • At “$ Remain”, enter the amount remaining on the construction contract. 
    • Enter the cash flows expected from those projects in the appropriate weekly periods.
  • Prospects:
    • Enter at “Prospect Name” the Projects projected to start in the next six periods.
    • At “Estimate $”, enter the estimate amount.
    • Enter the cash flows expected from those projects in the appropriate weekly periods.
  • Totals are automatically entered in the summary sheet.
  • The “Revenue Funnel” sums the potential revenue available from contracted jobs and strong prospects.
  • Enter the amount of current Accounts Receivable you expect to receive in this and in the coming weeks.
  • Enter any anticipated proceeds from the sale of an asset.
  • Enter any capital to be contributed by the Owner.
  • Enter any anticipated proceeds from loans or lines of credit.
  • Enter Current Accounts Payable.
  • Enter Cost Of Goods Sold (COGS) as a percentage of revenue.  This number should be available on P&L statement or can be calculated by dividing COGS by Revenue.
  • Enter the percent of invoiced COGS that will be paid this period.  Default is 25%.
  • The total of the Accounts Payable will be entered in the current period by default.
  •  Enter the amount of Accounts Payable you expect to pay in the next periods in the out-period spaces.
  • The amounts you enter will be deducted from the initial period Accounts Payable total.
  • Enter Payroll for each period.
  • Enter all Other Expenses. Use the General and Administrative (G&A) section of the P&L statement. Do not include Payroll and Loan Payments, which have their own entries.  This number should be relatively static, so extend to all six periods.  Add or subtract if you know any period is going to be unusual.
  • Enter the cash required for any anticipated asset purchases. If you are financing a purchase (like a truck), only enter the down payment.
  • Enter any anticipated withdrawals by the Owner.
  • Enter the total of all periodic payments to Lenders.
  • This line shows the weekly performance of the cash accounts.  
  • It measures the net cash flow for the period.
  • This line shows a projection of the balance of the cash accounts at the end of the weekly period.
  • You are watching for negative balances and should act when a negative balance is projected.
  • You can:
    • Slow down the payment of Accounts Payable;
    • Delay regularly scheduled payments;
    • Accelerate Accounts Receivable;
    • Increase Owner’s Contribution, or Additional Paid-In Capital, if resources are available;
    • Increase borrowings on established lines of credit;
    • Set up new loans with lenders.

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