Cash-flow forecast
What is Cash-flow forecast? A week-by-week estimate of the money coming in and going out, worked out from what customers owe you, what you owe suppliers, payroll and your other commitments.
In plain words
Profit tells you how you did. A cash forecast tells you whether you can pay salaries next Friday. It lays out the weeks ahead so you can see a dip before you are in it.
A worked example
A company starts the month with ₹6,00,000 in the bank.
| Week | Money in | Money out | Closing cash |
|---|---|---|---|
| 1 | ₹3,50,000 | ₹4,20,000 | ₹5,30,000 |
| 2 | ₹1,80,000 | ₹3,10,000 | ₹4,00,000 |
| 3 | ₹2,20,000 | ₹5,40,000 | ₹80,000 |
| 4 | ₹4,10,000 | ₹1,50,000 | ₹3,40,000 |
Week 3 is the squeeze. Seen early, you can chase the large receivables, move a supplier payment or arrange a short loan, instead of finding out on the day.
Why it matters
- Cost. Planned borrowing is cheaper than a last-minute overdraft.
- Deadline. Salary, rent and tax dates are fixed, while customer receipts are not.
- Risk. Invoice due dates are not payment dates. A forecast built on how customers actually pay is closer to the truth.
See a forecast built from your own receivables and payables.
How Kinnow handles it
The Cash-flow Forecaster builds a rolling 30, 60 and 90-day forecast with a likely range. It uses post-dated cheques, supplier payments coming due and each customer's payment history. It runs every Monday and whenever you ask. With too little history, it falls back to due dates and tells you so. See the capability page.
It appears in Account and in Analytics (Know). It is an estimate, not a promise. It is only as current as the bills and receipts posted in Kinnow, and the agent is validated with each client before it works on your books.
Questions
What is a cash-flow forecast?
A week-by-week estimate of the money coming in and going out, worked out from what customers owe you, what you owe suppliers, payroll and your other commitments.
How is this different from a profit and loss statement?
A profit and loss statement shows income and costs for a period. A cash forecast shows when money actually moves, so it can show a shortfall in a profitable month.
What if there is not enough payment history?
Kinnow falls back to invoice due dates and tells you the forecast is using them.
Ask us what your next 90 days of cash would look like.