Cash. Flow. Two small words, but when you run a business, they make all the difference.

If you’ve ever felt flush one minute and stressed the next, it’s probably not because you’re doing badly, it’s because your cash isn’t flowing how and when you expected.

That’s why Step 3 of the Plan, Profit, Prosper planner is to get your cashflow forecast sorted.

Because the truth is, if you don’t know what’s coming in and what’s going out, and when, then every business decision becomes a gamble.

In this short video, Michael Carthy explains why a 12-month cashflow forecast is essential for spotting issues early, managing growth, and staying in control.

Why You Need a Cashflow Forecast

Let’s be real: profit doesn’t pay wages, cash does.

Forecasting your cash flow gives you confidence and control. It tells you:

• When to spend and when to wait
• If you can afford that hire or upgrade
• When to chase payments or negotiate terms
• What months will be tight (so you’re ready)

Without a forecast, every bump feels like a crisis. With one, you’re in control.

What to Include in Your Forecast

Don’t overcomplicate it. A strong forecast is clear, not fancy.

Here’s what to build into it:

• Expected income and when it hits your bank
• Regular overheads rent, software, insurance, admin
• Staffing costs salaries, PAYE, pensions
• Tax bills VAT, Corporation Tax, Self Assessment
• Loan repayments or equipment leases
• Growth plans marketing spend, new hires, new gear
• Seasonal dips or peaks
• Cash reserve targets so you’re not running on fumes

And don’t forget your payment terms are customers taking 30 days, 60 days… 90? That makes a huge difference to cash timing.

Keep It Live, Not Static

A good cashflow forecast isn’t a 'set and forget' thing.

Update it:

• When you win or lose a client
• When costs change
• When something unexpected hits (good or bad)

Treat it as a living part of your business plan, not a dusty spreadsheet you made last January.

Get the Business You Want

Cashflow isn’t just about survival, it’s about confidence.

Knowing when the money’s coming and going helps you make decisions without fear. That’s what makes businesses strong, and owners sleep better.

Download our free Cash Flow Forecast Template and get clear on your numbers:

Need help building or sense-checking your forecast?
We’ll help you turn your cashflow from chaos into clarity.

Start today: Download the planner and template and take Step 3 now