Insights · Cash flow ·
Cash flow forecasting for SMEs: a practical guide
A cash flow forecast tells you what will be in the bank, week by week, before it happens. It is the single most useful report a small business can run, and it does not need to be complicated.
What goes in
- Opening bank balance from your accounts.
- Cash in: when customers will actually pay, not when you invoice.
- Cash out: wages, super, suppliers, rent, loan repayments (including principal), equipment.
- Tax: GST and PAYG on your BAS cycle, income tax instalments. See BAS and tax due dates 2026–27.
- Owner drawings.
How often
Weekly for the next 13 weeks, monthly for the next 12 months. Compare forecast to actual each week; the gaps teach you where the assumptions are wrong.
Common mistakes
- Forecasting from profit rather than cash: see cash flow vs profit.
- Leaving out loan principal and GST.
- Assuming everyone pays on time.
- Building it once and never updating it.
Want help setting one up? That is a core part of our fractional CFO service, or try the business health check.
Quick answers
How far ahead should a cash flow forecast go?
A rolling 13-week weekly forecast plus a 12-month monthly forecast works for most SMEs.
What is the most common forecasting mistake?
Forecasting from profit instead of cash, and leaving out GST, PAYG and loan principal.
Related reading: Build a budget you will use
Sources
General information only. This article does not take into account your circumstances and is not tax, legal or financial advice. Rates and rules change; check the sources above and get advice for your business before acting.
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