Why a 13-Week Forecast?
A 13-week cash flow forecast is the gold standard for near-term liquidity planning. It's short enough to be accurate, long enough to catch seasonal swings, and detailed enough to act on.
Step 1: Start With Receivables
Build a week-by-week view of expected collections. Layer in historical DSO by customer segment, not a single blended average.
Step 2: Map Payables and Payroll
Group outflows into three buckets: committed (payroll, rent, debt service), discretionary (marketing, travel), and variable (COGS-linked).
Step 3: Model Scenarios
Run a base, conservative, and stressed case. The delta between base and stressed is your early-warning buffer.
Step 4: Reconcile to the P&L
A forecast that doesn't tie back to the income statement is a spreadsheet, not a forecast. Reconcile monthly.
The Automation Edge
Modern FP&A platforms auto-pull bank and AR data, cutting manual entry and letting you update weekly in minutes instead of days.
