Why Cash Flow Matters
A business can be profitable on paper and still run out of cash — for example, when sales start slowly or big bills come early. A simple monthly forecast helps you see a cash shortage before it happens.
Forecast Your Cash Flow
12-Month Cash Flow Calculator
A simple monthly forecast. Enter amounts in your own currency. Everything is calculated on this page — nothing is sent or saved.
| Month | Cash in | Cash out | Net | Cash at end |
|---|
How to Read Your Forecast
- Cash in is the money from sales that month.
- Cash out is the cost of what you sell, plus fixed costs and loan repayments.
- Lowest cash point is the month you are closest to running out. Plan your funding around it.
The starting example uses the illustrative bakery from our other guides. It keeps things simple: no taxes, and sales are paid right away. Adjust it if customers pay you later or you pay taxes monthly.
How to Improve Cash Flow
- Get paid faster — ask for deposits or payment on delivery.
- Pay big bills in parts where suppliers allow it.
- Keep a cash cushion for slow months.
- Hold less stock so cash is not stuck on shelves.
Where It Fits in Your Business Plan
Cash flow belongs in the Financial Plan and Projections section, next to your startup costs and financial projections.
Frequently Asked Questions
What is cash flow?
The money coming into and going out of your business over a period of time, such as a month.
What is the difference between cash flow and profit?
Profit is sales minus costs over a period. Cash flow is the timing of actual money in and out. A profitable business can still run out of cash.
How do I make a simple cash flow forecast?
Start with your cash today, add expected sales each month, subtract expected costs and repayments, and see the cash left at the end of each month.
Is this cash flow calculator free?
Yes. It is free, works in your browser, and does not send or save your numbers.
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