Free Cash Flow Forecast Template
A 12-month rolling forecast for small businesses. Project inflows, outflows, and the resulting bank balance month by month.
A cash flow forecast is a best-guess projection, not a financial guarantee. Use it to spot timing problems, not to make irreversible decisions. Speak with your accountant or advisor before relying on it for funding or hiring decisions.
12-month cash flow forecast
One row per cash line, one column per month. The opening cash row of each month equals the closing cash of the previous month. Add SUM formulas per section.
| Section | Line | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening cash | Bank balance start | 12500 | 13200 | 11800 | 14100 | 15600 | 13900 | 16400 | 15700 | 18200 | 19800 | 21500 | 24200 |
| Cash in | Customer payments | 10800 | 9400 | 11200 | 10800 | 9700 | 12400 | 10800 | 13200 | 12600 | 13900 | 14800 | 16400 |
| Cash in | Other income | 0 | 1200 | 0 | 0 | 0 | 0 | 1200 | 0 | 0 | 0 | 0 | 1200 |
| Cash out | Supplier payments | 5200 | 4800 | 4900 | 5100 | 5800 | 5300 | 5000 | 5800 | 5900 | 5700 | 6300 | 7100 |
| Cash out | Wages and super | 3400 | 3400 | 3400 | 3400 | 3400 | 3400 | 3400 | 3400 | 3400 | 3400 | 3400 | 3400 |
| Cash out | Rent and utilities | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 |
| Cash out | Software and SaaS | 420 | 420 | 440 | 440 | 440 | 440 | 440 | 440 | 460 | 460 | 460 | 460 |
| Closing cash | Bank balance end | 13200 | 11800 | 14100 | 15600 | 13900 | 16400 | 15700 | 18200 | 19800 | 21500 | 24200 | 26800 |
Tip: refresh once a month. Replace forecast values with actuals as months close, and roll the next month's column into the active forecast. The exercise is more valuable than the spreadsheet.
Frequently asked questions
What's the difference between cash flow and P&L?
A P&L shows revenue and expenses earned and incurred over a period. A cash flow forecast shows money actually moving in and out of the bank. They differ when there's a timing gap: you invoice $10k in May (P&L: +$10k revenue) but the client pays in July (cash flow: +$10k cash in July). Cash flow tells you whether you can pay rent next month; P&L tells you whether you're profitable.
How accurate do my projections need to be?
You're trying to spot trouble three months ahead, not predict the future. Order of magnitude is enough. Refresh the forecast monthly against actuals; the next-month column is the one you most want to be right.
What's a typical buffer to aim for?
Three to six months of operating expenses in cash, as a rough rule. Lower for stable subscription businesses with predictable receipts; higher for project-based or seasonal businesses where receipts cluster.
When should I worry?
The moment any future month projects a negative closing balance, you have a runway problem. Common levers: invoice faster, defer non-urgent supplier payments, draw down a working-capital facility, or cut a discretionary cost. Spotting it three months ahead gives you choices; spotting it the week before gives you stress.
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