Build a simple view of expected cash receipts and commitments.
Choose a useful horizon
Start with a period that matches the decisions you need to make. A rolling weekly view can help organise immediate commitments; a longer view can help with planned expenditure. Record the opening cash balance and forecast date.
Separate expected cash from booked income
A sales invoice and a cash receipt may fall in different periods. Note when customers are expected to pay and record uncertainty in that assumption. Include the cash payments the business expects to make.
Make payroll commitments visible
Include payroll funding, applicable statutory commitments, suppliers and other known outgoings. Keep timing assumptions explicit. Review the forecast whenever a material receipt or payment changes.
Review the difference
Compare forecast and actual cash movement, explain the differences and update the next period. A cash-flow forecast is an estimate, not a guarantee of funds or business performance.
General information for a business discussion. Confirm official requirements and obtain advice appropriate to your circumstances.