A 90-day cash forecast is the single most useful financial tool for a small business. Here’s how to build a simple one in an afternoon.
If you could only add one financial tool to your business, I’d choose a rolling 90-day cash forecast. It turns “I hope we’re okay” into “here’s what’s coming,” and it doesn’t require complicated software.
Start with what you know
Open a simple spreadsheet with one column per week for the next 13 weeks. Enter your starting cash balance, then list the money you expect to come in and go out each week.
Cash in
List open invoices by the date you realistically expect payment, not the due date. Add recurring revenue and any confirmed new work.
Cash out
Add payroll, rent, loan payments, software, estimated taxes, and owner’s pay. Don’t forget annual or quarterly expenses that land inside the window.
Make it a habit
Each week, replace the oldest week with actuals and add a new week at the end. Within a month you’ll start spotting tight weeks early enough to do something about them: following up on invoices, timing purchases, or arranging financing before you need it.
The forecast will never be perfect, and that’s fine. Its job is to show you the direction of travel early enough to change it.
