Cashflow forecast template in Excel

What does this tool do?

Who is it for?

• Self-employed people and small SMEs who want to know whether there will still be enough money in three months for wages, VAT and suppliers.
• Businesses that are growing or investing and want to see what that does to the bank account before applying for a loan or credit line.
• Owners in seasonal sectors such as hospitality, construction or retail who need to bridge the quiet months.
• Accountants and finance managers looking for a simple, adaptable model to discuss with the owner.

What is included?

• Input sheet with the opening balance and, per month, the expected receipts and payments per category, twelve months ahead.
• Automatic calculation of net cashflow and closing balance per month, carried forward as the opening balance of the next month.
• Overview sheet with a chart of the balance per month and the lowest point highlighted.
• Weekly planning for the next thirteen weeks, a separate VAT line and three scenarios with a minimum buffer that triggers a warning (extended version).
• Several bank accounts, credit line, open invoices with expected payment date and a VAT and advance tax payment calendar (professional version).
• Forecast versus actual comparison per month, so you see where your estimates diverge (professional version).

How do you use the file?

1. 1

   Open the file and go to the “Input” sheet. Enter the balance of your bank account(s) on the start date as the opening balance. Only the yellow cells are meant to be filled in.

2. 2

   Enter the expected receipts per month, including VAT. For the first months start from open invoices and their due dates; for later months use your average turnover and usual payment term.

3. 3

   Enter the fixed payments: wages and social security contributions, rent, insurance, loan repayments and subscriptions. They come from your bookkeeping or bank statements and vary little from month to month.

4. 4

   Enter the variable payments: suppliers, stock, subcontractors and other costs, again including VAT. Put the VAT payment in the month you actually pay it: the 20th of the following month if you file monthly, the 25th of the month after the quarter if you file quarterly.

5. 5

   Add the one-off amounts you already know: an investment, an advance tax payment and, if you have staff, double holiday pay in May or June and the year-end bonus in December.

6. 6

   Look at the “Overview” sheet: the chart shows the balance per month and the lowest point. Update the file every month with the actual balances and roll the forecast forward by one month.

Worked example

A small SME with staff, one month taken from the forecast. All amounts include VAT and are rounded; they serve only as an illustration.

This month €3,650 is added. If in the next month the VAT payment coincides with double holiday pay and a large customer pays late, the same business can dip below zero. That is why you look at the whole series, not at a single month.

Sources & calculation method

This is how the calculation is built:

1. Closing balance of a month = opening balance + receipts − payments. The closing balance automatically becomes the opening balance of the next month, so one error in an early month carries through to every later month.
2. All amounts are cash amounts including VAT and sit in the month the money actually arrives on or leaves the account, not the month of the invoice. A January invoice with a thirty-day payment term therefore sits in February.
3. The VAT payment is the difference between the VAT you charge customers and the VAT you pay suppliers, placed in the month of payment according to your filing rhythm (monthly or quarterly). A VAT credit goes in as a receipt in the month the refund is paid out.
4. The lowest point is the smallest closing balance in the series. The extended version compares it with a minimum buffer you choose and colours the months where you fall below it.
5. The scenarios in the extended version apply percentages to receipts and variable payments (for example receipts −15 % in the cautious scenario); fixed payments such as wages, rent and loan repayments stay unchanged.

Assumptions

• Expected receipts are estimates based on open invoices and historical payment terms. The file does not know customer behaviour; if customers pay later than entered, the cash shifts to a later month.
• The VAT rhythm is a setting: monthly filers pay by the 20th of the following month, quarterly filers by the 25th of the month after the quarter. Check the VAT calendar of the FPS Finance for the exact dates, which shift when they fall on a weekend or public holiday.
• Advance tax payments are free input; the example calendar uses the quarterly dates for companies whose financial year matches the calendar year.
• Staff costs are entered as the total cash amount per month (net salary, withholding tax and social security together). The file does not calculate a wage cost from a gross salary.

Limitations

• The file is not bookkeeping and does not replace a liquidity plan drawn up by your accountant. It calculates with what you enter.
• A forecast beyond three or four months is by definition uncertain; use the distant months as a direction, not a promise.
• The basic version works with one bank account and one scenario. Credit lines, several accounts and a comparison with actuals are in the professional version.

Sources

This page and the file were last updated on September 24, 2026. Legislation and rates may have changed since.

Frequently asked questions