What the forecast shows
The Cash Flow Forecast projects your closing bank balance week-by-week for the next 12 weeks. Each week has three components:
- Opening balance: closing balance of the previous week (or today's actual balance for week 1)
- Expected receipts: due-soon AR invoices + recurring invoices scheduled to issue + any forecasted receipts you have manually added
- Expected payments: due-soon AP bills + recurring expenses + payroll + tax obligations scheduled (BAS, super, PAYG) + manual forecasted payments
- Closing balance: opening + receipts − payments
Negative closing balances are flagged in red. The first negative week is highlighted prominently so you have something concrete to act on.
What it does well
- Catches imminent shortfalls — a payroll run two weeks out when your biggest AR invoice is due in three is the classic case the forecast surfaces.
- Quantifies the cost of late payers — drag a late invoice's expected receipt week forward by 2 weeks and the forecast immediately re-renders so you can see the impact.
- Stress-tests the next BAS payment — the quarterly BAS net amount is added automatically based on accrued GST + W2 + 5A.
What it does not do
- It is not a prediction. Receipts are based on due dates, not behavioural likelihood. A customer who always pays a fortnight late will still be shown receiving on the due date unless you adjust their expected pay date.
- It does not model new sales. The forecast assumes only what is already invoiced or already scheduled (recurring). If your business is growing fast, the forecast underestimates revenue.
- It does not handle large-but-uncertain payments well. A possible tax refund, a likely insurance settlement — these need to be entered as manual forecasted lines if you want them included.
Adjusting the assumptions
From the forecast page header:
- Edit expected dates: click any AR or AP row to shift its expected pay date. The downstream weeks re-render.
- Add a manual line: a one-off receipt or payment that is not already in the books — capital raise, owner drawing, equipment purchase.
- Toggle recurring: switch off any recurring invoice or expense to model what happens if it pauses.
All edits are scoped to the forecast — they do not change actual invoices, bills, or recurring schedules.
Recommended cadence
Review the forecast weekly. Monday morning is a good time — looking forward 12 weeks before the week's commitments lock in. If a negative week appears beyond the immediate horizon, you have weeks to act: chase AR, defer a discretionary payment, or arrange a short-term facility. Negative weeks discovered the day they happen tend to cost a lot more.