Your starting cash balance at the beginning of the forecast period.
| Month | Inflow ($) | Outflow ($) |
|---|---|---|
| Jan | ||
| Feb | ||
| Mar | ||
| Apr | ||
| May | ||
| Jun | ||
| Jul | ||
| Aug | ||
| Sep | ||
| Oct | ||
| Nov | ||
| Dec |
Enter your expected monthly income and expenses.
Apply to All Months
Final Balance
$23,000.00
Total Net Cash Flow
$18,000.00
Lowest Balance
$5,000.00
Months in Deficit
0
Closing balance by month
Everything you need to know about projecting your business cash flow
What is a cash flow forecast?
A cash flow forecast is a projection of the money expected to flow in and out of your business over a given period, typically 12 months. It tracks your opening balance, adds expected income (inflows) such as sales revenue and other receipts, and subtracts anticipated expenditure (outflows) such as rent, salaries, and supplier payments. The result shows your projected closing balance for each month, helping you identify when your business might face cash shortages or surpluses.
Why is cash flow forecasting important?
Cash flow forecasting is one of the most critical financial planning tools for any business. It helps you avoid cash shortages that could leave you unable to pay suppliers, staff, or the ATO on time. A good forecast allows you to plan investments, manage debt repayments, negotiate better terms with suppliers, and make informed decisions about hiring or expansion. Many profitable businesses fail due to poor cash flow management, so regular forecasting is essential for long-term survival and growth.
What should I include in inflows and outflows?
Inflows should include all sources of cash coming into your business: sales revenue, client payments, loan drawdowns, investment capital, tax refunds, and any other receipts. Outflows should cover all cash leaving your business: rent and utilities, salaries and wages, supplier payments, loan repayments, tax payments (GST, income tax, PAYG), insurance, marketing costs, equipment purchases, and any other regular or one-off expenses. Be as comprehensive as possible to ensure your forecast is realistic.
How often should I update my cash flow forecast?
At a minimum, you should update your cash flow forecast monthly by replacing projected figures with actual results and adjusting future months accordingly. For businesses with tighter margins or more volatile income, weekly updates provide better control and earlier warning of potential problems. Many accountants recommend maintaining a rolling 12-month forecast that you review at the end of each month, adding a new month to the end as each month passes. This creates a continuous forward-looking view of your cash position.
Planning Tool: This calculator provides a simplified cash flow forecast for planning purposes. For complex business situations involving multiple revenue streams, seasonal variations, or significant capital expenditure, consult a qualified accountant or financial adviser.
Related Calculators
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms