Guide
13-Week Cash Flow Forecast. See the Shortfall Before It Arrives.
A practical guide to the short-term cash tool lenders, boards, and CFOs rely on.
Quick Answer
What is a 13-week cash flow forecast?
A 13-week cash flow forecast is a rolling, week-by-week projection of cash coming in and going out over the next quarter. It starts from the actual bank balance, schedules receipts and payments on the dates they will really happen, and is updated weekly with actuals so leaders can spot and fix cash shortfalls weeks in advance.
Key Takeaways
- Use real bank balances, not book cash.
- Schedule receipts by actual payment behavior.
- Update weekly and explain every variance.
- Act on the low point early.
Last reviewed by the Sataurius advisory team.
Step 1: Start From Actual Cash
Begin with today's bank balance across every account. The forecast is only as good as its opening number.
Step 2: Forecast Receipts
- Schedule open receivables by when customers actually pay, not by due date.
- Add expected new sales using your historical collection pattern.
- Include loan draws, tax refunds, and other non-operating inflows.
Step 3: Forecast Disbursements
- Payroll and benefits on their real pay dates.
- Open payables, rent, inventory purchases, and debt service.
- Quarterly taxes and one-off items such as insurance renewals.
Step 4: Review Weekly and Act
Compare forecast to actual every week, explain the gaps, and roll forward. When the forecast shows a low point, decide early: accelerate collections, delay discretionary spend, or arrange a credit line.
Our fractional CFO services build and run this forecast for clients, often alongside a full financial model. For a deeper walkthrough, read our 13-week cash flow article.
FAQ
Frequently Asked Questions
What is a 13-week cash flow forecast?
A 13-week cash flow forecast is a rolling, week-by-week projection of cash receipts and disbursements for the next quarter. It shows when cash will be tight, so leaders can act before a shortfall instead of after it.
Why 13 weeks?
Thirteen weeks is one quarter. It is long enough to see payroll cycles, tax payments, and seasonal swings, and short enough to forecast with real invoices, bills, and orders rather than estimates.
Is a 13-week cash flow the same as a budget?
No. A budget is an annual, accrual-based plan for profit. A 13-week cash flow is a short-term, cash-based tool for liquidity. Most businesses need both.
How often should the forecast be updated?
Weekly. Each week, replace the forecast for the week just finished with actuals, explain the variances, and add a new week at the end so the forecast always looks 13 weeks ahead.