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Posted: Mon 6th Jul 2026
Last updated: Mon 6th Jul 2026
Download our simple cash flow forecast template to estimate how much money your business is likely to have available over the next 12 months.
Use it to plan what's coming in, what's going out and where cash might get tight.
It's built for small business owners who want a clear view of their cash position without making the process more complicated than it needs to be.
Need instructions? Jump to How to use the template below.
This template is for general planning only. It does not replace advice from an accountant, bookkeeper or finance professional.
The template is an Excel spreadsheet with six simple sections:
A start page with quick instructions
A 12-month cash flow forecast
An assumptions tab to record how you've estimated your figures
An actuals and variance tab to compare your forecast with what really happened
A 13-week cash view for shorter-term planning
A worked example that shows how to use the template
The spreadsheet includes built-in formulas, monthly totals, annual totals and warning flags to help you spot months where your cash balance may fall too low.
This template is for small business owners, sole traders, freelancers and founders who want a clearer view of their cash flow.
It can be useful if you're:
planning for tax, VAT or loan repayments
dealing with late payments
managing seasonal sales
preparing to take on new costs
applying for finance
trying to understand why the business feels short of cash even when sales are steady
You don't need advanced finance knowledge to use it. The template is designed to help you think through your numbers in a structured way.
This template helps you estimate how much cash your business may have over the next 12 months.
Use it to plan ahead, spot tighter months early and make better decisions about spending, tax, stock, hiring and chasing payment.
It's a planning tool. The figures won't be perfect, but they should be useful enough to show what could happen if your current assumptions are right.
Best use: Complete the forecast once, then update it regularly. A cash flow forecast only stays useful if it changes as the business changes.
Gather the figures you already have.
Your current business bank balance.
Unpaid invoices and when you expect them to be paid.
Expected sales, confirmed orders, retainers or repeat income.
Regular costs such as rent, software, wages, insurance, stock and utilities.
Tax, VAT, loan repayment and credit card payment dates.
Any planned one-off costs, such as equipment, a website project, stock, training or professional fees.
Any expected finance, grants, investment or owner funds going into the business.
Not every number has to be exact, but you do need realistic estimates and dates.
Start with the "Start here" tab. Read this first so you understand what each section is for.
Go to the "12-month forecast" tab. Add your opening cash balance at the start of the first month. This should be the cash available in your business bank account, not your expected profit.
Add money coming in. Enter the cash you expect to receive in each month. Focus on when money is likely to arrive, not simply when you make a sale or raise an invoice.
Add money going out. Include regular costs, variable costs and occasional payments. It's easy to forget quarterly, annual or one-off costs, so check your bank statements if you're not sure.
Check the closing cash balance. The spreadsheet will calculate this for each month. Look for months where the balance drops close to, or below, the minimum cash level you want to keep in the business.
Record your assumptions. Use the "Assumptions" tab to explain where your numbers came from. This is especially useful for expected sales, late payments, tax and costs that may change.
Compare forecast with actual figures. At the end of each month, use the "Actuals and variance" tab to compare what you expected with what actually happened.
Use the 13-week view if cash is tight. The 12-month forecast is useful for planning. The 13-week view is better when you need closer control over what's due in the next few weeks.
Look at the worked example. Use it to see how the template works before completing your own version.
The forecast is only as good as the timing of the cash. Be cautious where you need to be.
If a customer usually pays 20 days late, reflect that in the month you expect the money to arrive. If a cost is likely but not confirmed, include it and add a note.
For sales, don't just enter your target. Enter what you can reasonably expect, based on confirmed work, repeat customers, seasonality and your current pipeline.
You can always create a more optimistic version separately, but your main forecast should help you run the business safely.
Update the forecast at least every month. If cash is tight, or your business has lots of payments moving in and out each week, review it every week.
The whole point of maintaining this document is to avoid being surprised by a shortfall you could have seen coming.
At each review, check what's changed. Which invoices came in late? Which costs were higher than expected? Has a customer delayed a project? Has a tax bill or supplier payment moved closer?
Then update the next few months so the forecast reflects the business as it is now.
A low cash month isn't automatically a crisis. But it is a prompt to act early. The earlier you see the gap, the more options you usually have.
Chase unpaid invoices before the due date passes, not weeks afterwards.
Ask for deposits, staged payments or shorter payment terms where appropriate.
Delay non-essential spending if it won't damage the business.
Speak to suppliers early if you may need different payment timings.
Review whether prices, margins or payment terms are contributing to the problem.
Speak to an accountant, a financial adviser or a lender before taking on finance you're not sure about.
Try to be realistic rather than optimistic. A forecast is only useful if it reflects how money is likely to move through the business.
Pay particular attention to:
when customers will actually pay, not just when you invoice them
quarterly or annual costs that are easy to forget
VAT, tax and payroll commitments
owner drawings or dividends
loan and credit card repayments
one-off costs, such as equipment, repairs or stock
quieter trading periods
Review the forecast regularly. For many businesses, once a month is enough. If cash is tight, update it weekly.
Download the cash flow forecast template
Use the template to build a simple forecast, update it with real figures and keep a closer eye on your business's cash position.
