1. What Is a Cash Flow Forecast?
A cash flow forecast is a tool that helps you predict how much money will flow in and out of your business over a set period—typically monthly or quarterly. It tracks your cash inflows (sales, loans, investments) and outflows (wages, bills, rent) to ensure you never run out of funds.
2. Why You Need a Cash Flow Forecast
Managing your cash flow is vital for staying solvent. Even profitable businesses fail when they run out of cash.
Benefits of cash flow forecasting:
- Helps you plan for lean months
- Supports better financial decisions
- Essential for applying for loans or grants
- Keeps you in control of daily operations
- Avoids overspending and surprises
3. Features of a Simple Excel Cash Flow Template
A simple cash flow forecast template Excel free download will typically include:
- Starting cash balance
- Monthly cash inflows (e.g., sales, loans, investment)
- Monthly cash outflows (e.g., wages, stock, rent)
- Net cash flow for each month
- Ending cash balance (carried into the next month)
These templates use formulas to automatically calculate totals and balances.
4. Who Should Use a Simple Cash Flow Template
This tool is ideal for:
- Startups and small businesses
- Sole traders and freelancers
- Nonprofits and community organisations
- Side hustles and part-time entrepreneurs
- Anyone who wants to track monthly finances
5. Where to Find a Simple Cash Flow Forecast Template Excel Free Download
Some trusted sources include:
- UK government business websites
- Start Up Loans Company (British Business Bank)
- Wenta (free UK business support)
- Smartsheet and Excel Ace
- Google Sheets marketplace (for cloud-based versions)
These templates are built for simplicity, helping even non-accountants stay on top of their cash flow.
6. How to Use the Template Effectively
Follow these steps:
- Enter your starting balance at the top of the sheet.
- List your expected cash inflows (by month).
- Record all outflows, including bills, wages, and supplies.
- The sheet will automatically calculate net movement and running balance.
- Update monthly to compare actuals vs forecasts.
Consistency is key—review and revise your forecast often to reflect reality.
7. Customising Your Cash Flow Template
You can tailor your Excel file by:
- Adding more months or a full 12-month view
- Including categories specific to your business
- Adding a chart to visualise cash flow trends
- Colour-coding for easier reading
- Locking formulas to avoid accidental edits
8. Tips for Maintaining Healthy Cash Flow
- Send invoices quickly and follow up on late payments
- Delay unnecessary expenses during tight periods
- Use invoice or short-term finance for gaps
- Keep a reserve for emergencies
- Forecast realistically—not optimistically
Frequently Asked Questions
Is a free Excel cash flow template good enough for lenders?
Yes, as long as it’s accurate and includes your assumptions and real data.
Can I use it for personal budgeting?
Absolutely. It works well for both business and household finances.
Do I need Excel or can I use Google Sheets?
Most Excel templates can be imported into Google Sheets for free.
How often should I update my forecast?
Ideally monthly, or anytime your sales or costs change significantly.
Can I get a cash flow template tailored to my industry?
Yes, some templates are available for sectors like retail, food, or service businesses.
Will this help me avoid running out of cash?
If used properly, yes—it gives early warning of potential shortfalls.
Conclusion
A simple cash flow forecast template Excel free download is one of the most useful tools for new and growing businesses. It helps you see where your money is going, anticipate shortfalls, and make informed decisions. Whether you’re a startup or a solo entrepreneur, this template keeps your financial future within reach.