Simple Cash Flow Forecast Template Excel Free Download NEW!

Because of its short time horizon, daily forecasting gives a granular view of cash that enables day-to-day decision-making. Different internal and external factors can lead you to consider daily cash forecasting.

A yearly cash forecast is often a good foundation for creating future annual budgets because it presents year-to-year financing, operations, and investing trends.

Combine yearly cash forecasting with shorter forecast models to plan for multiple scenarios and create a rolling budget. When used together, these reports help you make more thorough cash plans.

Simple Cash Flow Forecast Template Excel Free Download

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We have a short series of articles meant to help you decide the forecast time horizon that fits your business objectives. The first piece reviews the practical uses of the 13-week cash flow forecast.

The difference between sales (income/revenue) projections and the overheads is shown either as a positive figure or a shortfall. A spreadsheet should therefore indicate totals that match your opening and closing bank balance each month, to track 'cash flow' in and out of your account.

A cashflow forecast helps to work out viability in terms of how much cash (liquidity) will be in a venture at a given stage. Ideally, you should ensure that you have enough cash to cover at least three months' outgoings if you had no sales. This is known as 'working capital'.

This file includes a separate tab with guidance on how to use the cash flow forecast template, as well as some useful hover-over tips and messages on the template itself to support you as you work through. For your ease, this file includes a blank Personal Survival Budget template, which you must also submit with your application. These two templates are automatically linked together to reflect where any shortfall in your personal budgeting may need to be made up by drawings from your business. The file also includes a Business Plan template, which is required for your application.

While large, publicly-traded companies will certainly have their own set of internal models updated constantly on a daily (or weekly) basis, our post will focus on providing a basic overview of monthly cash flow models.

But at the same time, monthly cash flow forecast models are not meant to manage urgent liquidity requirements, as is the case for the thirteen-week cash flow model (TWCF) used in the restructuring of distressed companies.

Regarding the cash outflows, the higher disbursements directly connected to higher revenue generation (i.e. variable costs) like inventory purchases, CapEx, and employee wages, which were 20% higher than anticipated.

A cash flow forecast is the most important business tool for every business. The forecast will tell you if your business will have enough cash to run the business or pay to expand it. It will also show you when more cash is going out of the business than in.

This template enables users to prepare annual cash flow projections for any user defined five year period. The template includes an annual income statement, cash flow statement and balance sheet. The cash flow projections are based on turnover, gross profit and expense values that are entered by the user as well as a number of default assumptions which are used to create an automated balance sheet. These assumptions include opening balance sheet balances, working capital ratios, payroll accruals, sales tax, income tax, dividends and loans. The annual reporting periods are based on any user defined start date.

Note: The templates section of our website also includes a Monthly Cash Flow template and a Forecast vs Actual Cash Flow template which enable users to compile a 36 month cash flow forecast and to compare the forecasted balances to actual account balances.

The following sheets are included in this template:

Assumptions - this sheet includes the default assumptions on which the annual cash flow projections are based.

IncState - this sheet includes a detailed annual income statement for 5 annual periods. All the rows that are highlighted in yellow in column A require user input in column C and the codes in column A are mainly used in the sales tax, receivables & payables calculations. The rows that do not contain yellow highlighting in column A contain formulas and are therefore calculated automatically.

CashFlow - the annual cash flow statement is automatically calculated and requires no user input.

BalanceSheet - all balance sheet calculations are based on the template assumptions and the income statement & cash flow statement calculations. No user input is therefore required on this sheet.

Loans1 to Loans3 & Leases - these sheets include detailed amortization tables which are used to calculate the interest charges and capital repayment amounts that are included on the income statement and cash flow statement. Each sheet provides for a different set of loan repayment terms to be specified.

Note: If you do not want to include any of the line items that are listed on the income statement, cash flow statement or balance sheet, we recommend hiding these items instead of deleting them. If you delete items which are used in other calculations, these calculations will result in errors which you then need to fix or remove.

The business name and the start date for the cash flow projections need to be entered at the top of the Assumptions sheet. The business name is included as a heading on all the sheets and the reporting periods which are included in the template are determined based on the start date that is specified. This date is used as the first annual period and the 4 subsequent annual periods are added to form the 5 year projection period.

The income statement only requires user input in column C where there is yellow highlighting in column A. The year 2 to 5 calculations are automated (except for gross profit percentages) and based on the user input on the Assumptions sheet. Rows without yellow highlighting are automatically calculated. The cash flow statement and balance sheet requires no user input and all calculations are automated.

The template includes two default lines in each of these sections - one for a typical product based item and one for a typical service based item. The template can therefore be used for both service and trade based businesses. There are no cost of sales and gross profit values in service based businesses and a gross profit percentage of 100% can therefore be specified. You can also hide the cost of sales and gross profit sections if you do not want to include them in your cash flow projections.

Note: Staff costs have been included in a separate section on the income statement in order to be able to calculate payroll accruals. If you do not need to include payroll accruals in your cash flow projections, we recommend entering nil values and hiding these rows. If you delete the section, some of the payroll accrual formulas may result in errors and you therefore may need to delete them as well.

We also realize that some users may want to include depreciation and amortization as part of their operating expenses. We have therefore provided for this in that the depreciation and amortization calculations on the cash flow statement are based on the default code which is included in column A. You can therefore enter nil values in the depreciation & amortization section on the income statement, hide the section and include these line items in the operating expenses section and as long as you also include the default codes in column A, the cash flow statement values for depreciation and amortization will be calculated correctly.

You do not need to use all four loan amortization sheets - if you only need to include loans based on one set of repayment terms, you can delete the other loan amortization sheets, delete the other interest paid rows on the income statement, delete the other proceeds from loans rows on the cash flow statement, delete the other repayment of loans rows on the cash flow statement and delete the other loan balances from the balance sheet.

If there is an opening balance for the required additional loan terms, you need to include a new code in the balance sheet opening balances section on the Assumptions sheet and base the opening balance calculation in the first period of the amortization schedule on this code. You also need to add new rows to the interest paid section on the income statement, the loan proceeds section on the Assumptions sheet and cash flow statement, the loan repayment section on the cash flow statement and the loan balances section on the balance sheet. The appropriate formulas can be copied from one of the existing items and the sheet reference in the copied formula can then just be replaced by the sheet name of the new amortization table that you've added.

The taxation line item on the income statement is automatically calculated based on the profit before tax and the income tax assumptions which are specified on the Assumptions sheet. If you do not want to include income tax in the cash flow projections, simply enter an income tax rate of 0%. This will result in no income tax being calculated.

You also need to specify the payment frequency in months and the first payment month in which a payment needs to be included. The template automatically provides for income tax based on what is due and includes the income statement amount and a provision for taxation on the balance sheet. The payment frequency and month of payment assumptions are then used to determine when the income tax liability will be settled which will result in the appropriate cash outflow being recorded on the cash flow statement and the provision for taxation being reduced.

If you want to include dividend calculations, you need to specify a dividend percentage which will be applied to the profit for the period in order to calculate the dividend value. You also need to specify the frequency in months of dividend payments and the first payment month. The frequency of dividends determines when the dividends are included on the income statement and the first month of payment determines when the dividend payment is included on the cash flow statement (only has an effect if the dividend payment option is Subsequent). ff782bc1db