Start with your opening bank balance
Use the real balance across your business accounts today. Everything else builds on this figure.
List money in and money out by week
Be realistic about when customers actually pay, not when you invoice them. Include:
- Customer receipts, based on real payment habits
- Wages, rent, suppliers and loan repayments
- VAT, PAYE and corporation tax payments on their due dates
- One-off costs such as equipment, insurance renewals or drawings
Use it to make decisions
The forecast shows your lowest point ahead of time. That gives you options: chase a debtor, delay a purchase, or arrange funding before you need it rather than in a panic.