Cash flow forecasting: the 12-week view

What the forecast shows

The Cash Flow Forecast projects your closing bank balance week-by-week for the next 12 weeks. Each week has three components:

• Opening balance: closing balance of the previous week (or today's actual balance for week 1)
• Expected receipts: due-soon AR invoices + recurring invoices scheduled to issue + any forecasted receipts you have manually added
• Expected payments: due-soon AP bills + recurring expenses + payroll + tax obligations scheduled (BAS, super, PAYG) + manual forecasted payments
• Closing balance: opening + receipts − payments

Negative closing balances are flagged in red. The first negative week is highlighted prominently so you have something concrete to act on.

What it does well

• Catches imminent shortfalls: a payroll run two weeks out when your biggest AR invoice is due in three is the classic case the forecast surfaces.
• Quantifies the cost of late payers: drag a late invoice's expected receipt week forward by 2 weeks and the forecast immediately re-renders so you can see the impact.
• Stress-tests the next BAS payment: the quarterly BAS net amount is added automatically based on accrued GST + W2 + 5A.

What it does not do

• It is not a prediction. Receipts are based on due dates, not behavioural likelihood. A customer who always pays a fortnight late will still be shown receiving on the due date unless you adjust their expected pay date.
• It does not model new sales. The forecast assumes only what is already invoiced or already scheduled (recurring). If your business is growing fast, the forecast underestimates revenue.
• It does not handle large-but-uncertain payments well. A possible tax refund, a likely insurance settlement, these need to be entered as manual forecasted lines if you want them included.

Adjusting the assumptions

From the forecast page header:

• Edit expected dates: click any AR or AP row to shift its expected pay date. The downstream weeks re-render.
• Add a manual line: a one-off receipt or payment that is not already in the books, capital raise, owner drawing, equipment purchase.
• Toggle recurring: switch off any recurring invoice or expense to model what happens if it pauses.

All edits are scoped to the forecast, they do not change actual invoices, bills, or recurring schedules.

Recommended cadence

Review the forecast weekly. Monday morning is a good time, looking forward 12 weeks before the week's commitments lock in. If a negative week appears beyond the immediate horizon, you have weeks to act: chase AR, defer a discretionary payment, or arrange a short-term facility. Negative weeks discovered the day they happen tend to cost a lot more.