Cash flow
Practical steps, records and official guidance on cash flow.
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Questions
61. How do I build a 13-week cash flow forecast?
Forecast cash by the week it is expected to move through the bank.
- Start with the reconciled bank balance and schedule receipts, suppliers, wages, tax, debt and drawings across 13 weeks.
- Use the browser forecast for a short scenario, or the existing workbook for a detailed worked example.
Fictional worked example
Start a fictional forecast on 28 September 2026 with $200 opening cash and a $100 buffer. Enter $1,000 receipts and $300 payments in week 1, and zero in every later week. Closing cash is $900. Delay the full $1,000 receipt by two weeks: cash closes at minus $100 in weeks 1 and 2, then returns to $900 in week 3. The lowest balance is minus $100, so the funding gap to the buffer is $200. The eventual closing balance is unchanged.
Weekly closing balances can hide a shortage within the week; review daily timing where cash is tight.
Set up a cash flow statement · 13-week cash forecast
Link to question 6162. Why is my business profitable but short of cash?
Profit and cash diverge because income and expenses can be recognised at different times from receipts and payments.
- Bridge profit to cash using receivables, payables, inventory, tax, capital spending, debt and drawings.
- Use the fictional Newcastle example to inspect a profitable business with a temporary cash shortage.
Loan proceeds and principal repayments affect cash without being ordinary trading revenue and expense.
Set up a cash flow statement · Fictional Newcastle cash flow workbook
Link to question 6263. How much cash should I reserve for BAS, payroll and super payments?
Schedule the actual expected liabilities and payment dates, then choose a buffer.
- Reconcile GST, withholding and super liabilities to their supporting workpapers.
- Enter their payment weeks in the cash forecast, including other committed cash costs.
The forecast reserves supplied amounts; it does not calculate statutory liabilities from sales.
Set up a cash flow statement · 13-week cash forecast
Link to question 6364. What happens to my cash balance if a major customer pays 30 or 60 days late?
Move the expected receipt to its revised date and compare the lowest cash balance.
- Use the weekly forecast’s delayed-receipt controls and retain both scenarios.
- For an exact 30- or 60-day delay, use the existing dated workbook and record any receipt outside its horizon.
The browser scenario accepts whole weeks, so it is not an exact day-based simulation.
Set up a cash flow statement · 13-week cash forecast
Link to question 6465. Can my business afford another employee?
Compare the extra cash costs of hiring with conservative additional receipts and available cash.
- Calculate annual staff cost, then phase wages, super, setup costs and training into the forecast.
- Test slower sales, a delayed start and a minimum cash buffer before committing.
Annual profitability does not establish that each payroll payment will be affordable.
Set up a cash flow statement · Staff cost calculator
Link to question 6566. What would buying equipment outright versus financing it do to my cash flow?
Compare the timing and total payments of outright purchase and finance.
- Put the purchase price into the relevant cash week for the outright option.
- For finance, schedule deposit, fees, repayments and any balloon; compare the cash minimum and total cost.
The loan calculator assumes fixed monthly payments with no fees or balloon. Tax and ownership effects require separate review.
Set up a cash flow statement · Monthly loan payment calculator
Link to question 6667. How much working capital or overdraft capacity will I need next quarter?
Find the lowest forecast balance and compare it with the cash buffer you need.
- Include current bank cash, committed payments, realistic receipts and stressed collection dates.
- Use the forecast funding gap result as an initial amount to investigate, then review timing and facility terms.
A calculated gap is not a credit approval or proof that borrowing is suitable.
Set up a cash flow statement · 13-week cash forecast
Link to question 6768. How can I reduce overdue customer balances and get paid sooner?
Prioritise overdue balances by amount, age, dispute and likelihood of collection.
- Reconcile the aged ledger, assign an owner and record the next action for each overdue account.
- Review invoice accuracy, payment terms and billing timing; update receipt dates using what customers confirm.
Changing a forecast date does not improve collection evidence.
Link to question 6869. How do I plan for seasonal cash shortages?
Plan from the seasonal payment and receipt pattern, including the costs incurred before sales arrive.
- Compare prior periods with current orders, staffing and supplier commitments.
- Stress-test the low season and put any agreed funding or cost changes into the forecast.
A straight average month can conceal the quarter’s lowest cash balance.
Set up a cash flow statement · 13-week cash forecast
Link to question 6970. How do I update my forecast each month using actual results?
Replace completed periods with reconciled actuals and explain the difference before rolling the forecast forward.
- Save the previous forecast, match actual receipts and payments, and classify timing versus permanent changes.
- Refresh remaining assumptions and extend the horizon with a dated version and owner.
Do not overwrite the old forecast if you still need it to explain accuracy and decisions.
Set up a cash flow statement · Budget variance calculator
Link to question 70Reviewed 11 September 2026. Planning method for the dates entered. Include obligations in their expected payment weeks. Tax guidance must match your year and circumstances.
One of 10 topics in the 100 Australian accounting questions.