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Cash Flow Forecast Tool

Project your 12-month cash flow with customizable monthly inflows, outflows, and one-time events.

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$
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MonthInflowOutflowEventsNetBalance
Jan--$10,000$110,000
Feb--$10,000$120,000
Mar--$10,000$130,000
Apr--$10,000$140,000
May--$10,000$150,000
Jun--$10,000$160,000
Jul--$10,000$170,000
Aug--$10,000$180,000
Sep--$10,000$190,000
Oct--$10,000$200,000
Nov--$10,000$210,000
Dec--$10,000$220,000

One-Time Events

$

Ending Cash

$220,000

Lowest Point

$110,000

In Jan

Positive Cash Flow Months

12 of 12

Negative Balance Months

None

Running Cash Balance

StartJanFebMarAprMayJunJulAugSepOctNovDec$0$51k$101k$152k$202k$253k

Monthly Net Cash Flow

JanFebMarAprMayJunJulAugSepOctNovDec$-12k$-6k$0$6k$12k

How it works

Cash flow forecasting projects your future cash position by modeling expected inflows (revenue, collections, investments) against outflows (expenses, payroll, loan payments) month by month. Unlike a profit and loss statement, cash flow accounts for the timing of when money actually moves -- you can be profitable on paper but still run out of cash if customers pay late or large expenses hit at the wrong time.

The formula

Monthly Net Cash Flow = Inflows - Outflows + One-Time Events Running Balance = Previous Balance + Net Cash Flow Ending Cash = Starting Cash + Sum of All Monthly Net Cash Flows

Why it matters for your business

Cash flow is the leading cause of small business failure -- not lack of profitability. A business can show healthy profits while simultaneously running out of cash due to timing mismatches between when revenue is earned and when it is collected. Forecasting helps you identify potential cash crunches weeks or months in advance, giving you time to arrange financing, accelerate collections, or delay non-essential spending.

Pro tip

Your accounts receivable days (how long customers take to pay) can make or break your cash flow even when the business is profitable. If you invoice Net 30 but customers actually pay in 45-60 days, you may need 2 months of expenses as a cash buffer. Track your actual collection times and build that delay into your forecast for a realistic picture.

Get deeper insights with James FP&A

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