REPORT ON PROGRESS
Cash Flow Planning
A cash flow forecast doesn’t need to be complicated. Here’s a simple approach that works for growing NZ businesses.
How to Build a Simple Cash Flow Forecast for Your Business
A cash flow forecast is one of those things that sounds more complicated than it is. At this stage, you don’t need anything sophisticated — you just need to know roughly what’s coming in and going out over the next few months.
Start with a vertical cash flow
A vertical cash flow is simply a list of your major upcoming expenses, sorted by date. Pull your last three months of expenses, identify the recurring ones, and map out when they’ll come out over the next three months.
Then add your expected revenue. This part is harder to predict, but even a rough estimate is better than nothing. The act of writing it down forces you to think about it, and you’ll get better at it over time.
We have a free template we can send you to get started. Get in touch if you’d like us to send it through, or if you want help building something more comprehensive.