A Cash Flow Forecast is the most important Cash Flow Management tool available to business owners and managers. It is critical to a business’ overall success, because a cash shortage is one of the hallmarks of a business slipping into trouble. A Cash Flow Forecast can help identify future cash flow problems, giving business owners and managers time to solve potential problems and sleep better at night.

A common Cash Flow Forecasting tool is the 13-Week Rolling Cash Flow Forecast. Once you establish a 13-Week Rolling Cash Flow Forecast, you will have an accurate picture of your cash flow situation. The 13-Week Rolling Cash Flow Forecast should be updated weekly in order to help you anticipate cash shortages in time to find and facilitate remedies before it is problematic to your business.

Five Reasons to Use A Cash Flow Forecast:

  1. Forecasting potential cash flow issues allows you to be proactive rather than reactive
  2. Your company will be better situated to take term discounts
  3. Cash flow forecasting is a sign of strong management that lenders and investors love
  4. Cash flow forecasts help owners better manage the draws they are able to take
  5. Consistent use of cash flow forecast means being more successfully and less stressed


Misty owns a boutique, retail store. She has decided to deepen her understanding of her business’ financial statements and wants to use them to help her run her business more effectively. She enlists the help of Lynea with Lynea Paradis Accounting Solutions to create a 13-Week Rolling Cash Flow Forecast for her business.

After accurately preparing Misty’s 13-Week Rolling Cash Flow Forecast, she notices that at the end of the 13 week period the company will not be able to fully pay all of her upcoming bills. This worries Lynea, greatly. She takes it upon herself to create a potential plan of action. Lynea advises Misty to open a business line of credit in order to meet future cash needs. Then, from the increased sales of the holiday season that is around the corner, Misty will be able to pay off the LOC balance before accruing any interest.

What would have been a major catastrophe is now a simple matter. Misty thanks Lynea, and decides to always have a 13-Week Rolling Cash Flow Forecast on hand.

Next Steps

Give us a call at (480) 641-4556 or send us an email and let us help you create a 13-Week Rolling Cash Flow Forecast, so you can sleep easier knowing where your business stands.