How to Create a 12-Month Cash Flow Forecast in Under an Hour

A solid cash flow forecast helps you stay in control of your finances and plan ahead with confidence — and it doesn’t have to be complicated. Here’s a fast-track method for building a 12-month cash flow forecast that gives you clarity in under an hour.

Step 1: List Your Expected Income

Include all regular revenue sources — sales, subscription contracts, and any seasonal income spikes. Look at past data to estimate realistic monthly figures.

Step 2: Add Your Fixed Costs

These are the non-negotiables: rent, wages, insurance, subscriptions. Since they don’t change much month to month, they’re easy to plug in upfront.

Step 3: Estimate Variable Expenses

These include marketing, raw materials, fuel, and utilities — anything that can change with activity levels. Adjust based on expected business activity each month.

Step 4: Factor in Seasonal Highs and Lows

Identify months where income tends to dip or expenses rise — for example, holiday slowdowns or inventory restocks. Mark these clearly so you can prepare.

Step 5: Calculate Monthly Surplus or Deficit

Subtract your total costs from income to see if you’re in surplus or shortfall each month. Highlight months with negative cash flow so you can plan solutions in advance.

Pro tip:
Accounting tools like Xero can speed this up by pulling data straight from your books. And if you spot shortfall months, FundTap gives you a quick way to cover the gap — without locking into long-term finance.

With a clear 12-month cash flow plan, you’ll be better equipped to make smart decisions, handle challenges, and grow with confidence.