How to Create a Cash Flow Forecast for Your Business

Your Step-by-Step Guide to Smarter Financial Planning

For many business owners, cash flow issues don’t come from a lack of sales—but from a lack of planning.

A cash flow forecast isn’t just another spreadsheet—it’s a powerful tool to help you understand when money is coming in, when it’s going out, and whether you’ll have enough to cover your obligations. It helps you avoid unexpected shortfalls, plan for growth, and stay compliant with ATO obligations like BAS, super, and tax.

At Streamlined Accountants, we believe cash flow forecasting should be practical, proactive, and powerful. Here’s how to create one step-by-step, plus the tools and tips to make it work for your business.

Why You Need a Cash Flow Forecast

• ✅ Predict shortfalls before they become emergencies

• ✅ Plan for tax and BAS payments with confidence

• ✅ Understand seasonal trends in your income and expenses

• ✅ Make confident decisions about hiring, investing, or launching campaigns

• ✅ Support funding or grant applications with credible forecasts

Step-by-Step Guide to Building a Cash Flow Forecast

1. Choose Your Forecasting Period

Start with a 12-week forecast if you're new to the process—it offers fast feedback and is ideal for short-term planning. More advanced businesses can build monthly or quarterly forecasts for longer-term insights.

2. Estimate Cash Inflows

Include:

• Sales revenue (based on past trends or expected contracts)

• Loan proceeds

• Government grants or funding

• GST refunds or tax offsets

• Other income (interest, dividends, etc.)

💡 Pro Tip: If you invoice clients, factor in payment delays—especially if you offer 30-day terms.

3. Estimate Cash Outflows

List all expected outgoings:

• Rent or mortgage

• Wages and superannuation

• Supplier payments

• BAS and ATO liabilities

• Marketing and software subscriptions

• Loan repayments

• Insurance premiums

• Asset purchases or upgrades

💡 Don't forget quarterly or annual costs like ASIC fees, tax planning, or equipment leases.

4. Calculate Net Cash Flow

For each period (weekly or monthly):

Net Cash Flow = Inflows – Outflows

This shows whether you’re in surplus or deficit. A consistent deficit is a red flag—it’s time to revisit pricing, expenses, or funding options.

5. Monitor & Adjust Weekly

Your forecast is only helpful if it's up to date. At Streamlined Accountants, we help clients automate cash flow tracking through platforms like:

• Xero (integrated forecasts and live bank feeds)

• Fathom (visual dashboards and scenario planning)

• Float or Spotlight Reporting (real-time cash flow forecasting tools)

Real Case Study: Forecasting Turned This Business Around

A Melbourne-based eCommerce store was consistently behind on BAS and super—even with decent monthly sales. After we implemented a 12-week rolling forecast using Xero and Float:

• They discovered a recurring cash dip every 5th week (due to stock orders + rent due)

• We helped shift supplier payments and set aside tax provisions weekly

• Result: No more missed ATO deadlines and they doubled their EOFY savings buffer in 6 months

Bonus Tips for Stronger Forecasting

• Set aside 15–30% of income for tax, BAS, and super obligations

• Use rolling forecasts—extend your forecast by a week every week

• Include a worst-case and best-case scenario to prepare for surprises

• Schedule regular reviews (monthly or fortnightly) with your accountant

Get Expert Help with Your Forecast

You don’t have to go it alone. At Streamlined Accountants, we help business owners:

✅ Set up reliable forecasting systems

✅ Automate reports with real-time data

✅ Stay ahead of tax and compliance deadlines

✅ Identify and fix cash flow leaks

📞 Want to take control of your cash flow and plan with clarity?

Call us at 0451 040 656 or email info@streamlinedaccountants.com.au for a custom cash flow review.

Let’s turn your numbers into smart business decisions.