Rolling forecast
- Deliverables
- A reconciled opening balance and expected weekly flows.
- Decisions it supports
- Identify periods of cash pressure.
Iter Advisors · Anticipating cash needs
Cash flow forecasting
See upcoming obligations before they become urgent.
A bank balance does not show what remains after the next payments. A rolling forecast connects expected receipts and payments to prepare decisions with your team.
An initial conversation to understand your situation and next steps.
When should you build a cash flow forecast?
A cash flow forecast tracks the dates and amounts of receipts and payments. It differs from a profit and loss statement: a sale can be recognized before payment. A 13-week horizon provides an operational view, supplemented by longer scenarios where necessary.
- Cash balances fluctuate sharply between monthly reviews.
- Collection dates are uncertain while costs have been committed.
- You need to decide on recruitment, purchasing or financing.
Documents to monitor upcoming obligations
Deliverables are agreed during scoping, according to your priorities and available data.
Assumption register
- Deliverables
- Payment dates, sensitive payments and explicit uncertainties.
- Decisions it supports
- See what could change the scenario.
Forecast versus actuals
- Deliverables
- Variances and their explanations, updated regularly.
- Decisions it supports
- Decide using the latest information.
A documented engagement : Seasonly
P&L modelling by channel: direct to consumer, retail and marketplaces. Inventory management and structuring of working capital financing. Implementation of a weekly dashboard for management and shareholders.
Identify which channels were actually profitable and fund inventory without undermining cash flow.
Read the case and its scopeA positive closing balance can conceal a shortfall along the way
| Period | Assumed receipts and payments | Week-end balance |
|---|---|---|
| Week 1 | €20,000 received − €45,000 paid = −€25,000 | −€5,000 |
| Week 2 | €50,000 received − €30,000 paid = +€20,000 | €15,000 |
All amounts are fictitious. The second week ends positive, but the first reveals a €5,000 requirement if the assumptions occur. Identifying a shortfall guarantees neither an authorized overdraft nor financing: assess options and terms before the deadline.
Build, reconcile and update the forecast
1. Reconcile the opening position
List bank accounts, receivables, payables and known commitments.
2. Build scenarios
Schedule flows, document assumptions and test the most sensitive uncertainties.
3. Update and decide
Compare with actuals, revise the next weeks and follow agreed actions.
A forecast maintained by the right people
Sales, purchasing and operations contribute expected dates. The CFO consolidates, checks consistency and prepares decisions. Update frequency depends on the situation.
Obtaining financing, negotiating with third parties and authorizing payments are separate actions. Options are compared with their costs and constraints.
How this fits within a Fractional CFO engagementDefine the scope before the quote.
The proposal depends on the number of entities and banks, the quality of payment schedules and monitoring frequency. Forecasting can be a dedicated engagement or a deliverable within recurring CFO support.
View CFO pricingFAQ : cash flow forecasting
Why a 13-week horizon?
It provides a weekly view of upcoming obligations. A longer cash budget can supplement it when an investment or financing decision requires one.
Which documents should we prepare?
Bank balances, customer and supplier trial balances, loan schedules, recurring costs, known obligations and commercial assumptions. Missing documents are identified.
Which tool should we use?
A structured spreadsheet may be sufficient for some needs. A dedicated tool is justified by sources, frequency, controls and the people responsible for updating it.
Useful resources
Written by Benjamin Ziza · updated on
Which decision or deadline are you preparing for?
Describe your needs, current organization and calendar. We will identify useful work together.
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