Cash Flow Forecasting

Cash‑Flow Forecasting

Take control of your liquidity with reliable insight

Effective cash‑flow forecasting turns uncertainty into clarity. At Ned Capital, we help businesses project future cash movements—so you can confidently plan for growth, manage commitments, and avoid surprises.

1. Why it matters

Avoid cash shortages – Identify low‑cash periods before they cause late payments, overdrafts, or even insolvency pwc.combusiness.vic.gov.au.
Plan investments confidently – Forecasts show when capital is available for expansion, equipment purchases, new premises, or operational scaling sage.commarkeluk.com.
Support stakeholder confidence – Lenders, investors, and directors look for robust cash‑flow projections as proof of financial discipline sage.com.

2. Choose the right time‑horizon

Short‑term (weekly/monthly): Spot upcoming dips or peaks to manage day‑to‑day liquidity anaplan.comthefinanceweekly.com.
Medium/long‑term (3–12 months+): Essential for investment planning, funding needs, and growth strategies sage.commarkeluk.com.
Use a rolling forecast that updates regularly as actuals come in, keeping your projections sharp and responsive pwc.comanaplan.com.

3. Build your forecast step‑by‑step

A. Set your horizon
Start with as much forward visibility as you can realistically model—typically weekly for immediate concerns and monthly up to a year for strategic planning pwc.comfsb.org.uk.

B. Estimate cash inflows

Include all actual receipts: invoice payments, grants, interest, asset sales, refunds pwc.combusiness.vic.gov.au.
Time schedules accurately: predicted payment dates matter more than invoice dates pwc.combusiness.hsbc.uk.
Use historical data if available; new businesses can use industry benchmarks fsb.org.ukshopify.com.

C. Forecast outflows

List committed payments: salaries, rent, loan instalments, taxes, supplier bills, marketing expenses, and purchases pwc.combusiness.vic.gov.au.
Include discretionary spends separately or as scenarios.

D. Calculate net and running balance

Subtract outflows from inflows for each period → net cash flow pwc.comshopify.com.
Carry forward balances to project accumulated cash position.
Highlight periods where cash drops below critical buffer levels.

4. Use best practices

Define your forecast’s purpose & accuracy: tailor detail and effort to business needs afponline.orgmarkeluk.com.
Balance granularity: too coarse hides issues; too fine wastes time afponline.organaplan.com.
Collaborate internally: involve sales, operations, finance, purchasing—each offers valuable insights cfoselections.comafponline.org.
Categorize & tag transactions: makes it easier to monitor trends and drill into areas of concern trovata.iofidelity-group.co.uk.
Automate data capture: linking accounting systems or bank feeds improves accuracy and speed trovata.ioanaplan.com.
Run scenario analyses: simulate best/worst‑case events—e.g. late sales, supplier delays, cost increases trovata.iothefinanceweekly.com.
Review & refine regularly: compare actuals vs forecast, investigate variances, and improve model tuning business.vic.gov.aumarkeluk.com.

5. Strategic benefits

Liquidity assurance: Maintain minimum cash levels to meet obligations.
Informed decision‑making: Know when to invest, draw on finance, or cut costs.
Relationship leverage: Use forecast data to negotiate overdrafts, credit lines, and supplier terms.
Operational agility: Be ready for seasonal shifts, supply issues, or market changes with scenario‑driven forecasting.

How Ned Capital helps

With deep experience in funding and financial advisory, Ned Capital offers:

Bespoke cash‑flow modeling tailored to your business forecast horizon and complexity.
Cloud‑hub and Excel‑based forecasting tools with live bank integration.
Expert training for finance and operational teams.
Regular review sessions to interpret results and adapt strategies.

Whether you’re a growing SME or an established business planning expansion, our team ensures your cash‑flow forecast is accurate, actionable, and aligned with your ambitions.

Getting started is easy

Schedule a discovery call – we’ll dive into your business model and needs.
Choose a forecasting tool – from simple templates to integrated software.
Launch your first forecast – with expert setup and input.
Refine & strategize – finalize scenarios, implement actions, and monitor performance.

Let’s clear the path to your cash‑flow confidence

Contact Ned Capital today to discuss how our cash‑flow forecasting service can drive better decisions and stronger financial control.

Ned Capital