Create a practical 13-week cash forecast

Start with bank cash you can actually use

Record cleared cash, then identify amounts reserved for taxes, payroll, customer obligations, or other restrictions. List expected collections by customer and week using realistic payment behavior. Keep uncertain opportunities outside the base case until there is a defensible reason to include them. A signed contract may support future revenue without guaranteeing cash will reach the bank before next week’s payroll.

Schedule commitments by payment date

Add payroll, rent, suppliers, debt service, taxes, insurance, software, and planned owner withdrawals in the weeks they are expected to be paid. Include annual and quarterly bills that disappear from an average monthly budget. For each week, calculate beginning cash plus receipts minus disbursements. Show a minimum operating cash target as a management assumption, not as a universal standard every business should adopt.

Use scenarios to choose specific actions

Create a delayed-collections case and a higher-cost case. If either produces a shortfall, identify actions with owners and dates: contact overdue customers, renegotiate a legitimate payment schedule, postpone optional spending, or discuss financing. Do not solve the forecast by silently delaying tax or payroll obligations. At each weekly review, replace the first week with actual results, explain differences, and add another week.

• Separate confirmed collections from pipeline estimates.
• Include taxes, annual bills, and debt principal payments.
• Test what happens if major customers pay later.
• Assign concrete actions before a projected cash gap arrives.