How to Forecast Cash Flow in Excel (Without Losing Your Mind)

If there’s one tool that keeps your business alive—it’s cash flow.

Yet many small business owners skip regular forecasting, risking late payments, stockouts, or panic-mode financing. Let’s fix that with a hands-on, Excel-powered method to forecast your cash flow with confidence.

Why Cash Flow Forecasting Matters

Cash flow forecasting helps you answer one question:

“Will I have enough cash to keep my business running in the next 30, 60, or 90 days?”

It’s different from profit: you can be profitable and still run out of money if your cash is tied up in unpaid invoices.

If you don't want to spend too much money on data tool, Excel is one of the best choice.

Build Your Forecast in Excel: Step-by-Step

1. Start with Beginning Cash Balance

• Add your current bank balance (include checking and any petty cash).

2. List Cash Inflows

This includes:

• Customer payments (expected by date)

• Loan proceeds or grants

• Other income (e.g., affiliate revenue, asset sales)

3. Add Outflows

These are your planned expenses:

• Rent and utilities

• Payroll and contractor fees

• Inventory purchases

• Marketing or subscription costs

• Loan payments

4. Calculate Ending Balance

Use this formula:

Ending Cash = Beginning Cash + Inflows – Outflows

5. Use Conditional Formatting

Highlight weeks where your ending cash is below a threshold.

This gives you a visual warning before trouble hits.

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Pro Tips for Better Forecasting

• Update weekly. Business is dynamic—so should your forecast be.

• Create scenarios. What if sales drop 20%? What if a big client pays late?

• Use Excel templates. 

cash_flow_template.xlsx

Download XLSX • 23KB

Try This Today

• Download the Excel template above and plug in your real numbers for the next 4 weeks.

• Set a 15-minute calendar reminder every Friday to update it.

  
  
  
  

Your business deserves clarity—not guesswork.