A cash flow projection is the process of estimating cash in and out of the business over a specific period of time. The goal is to predict future cash positions to avoid a cash shortage and earn returns on any cash surplus the business may have. A properly prepared cash flow projection provides the business with a view of all expected funds that will be coming in and going out of the business. Knowing your projected cash flow can provide a solid basis for making business decisions.
Cash flow projection templates are commonly used by businesses, entrepreneurs, financial analysts, and accountants.
The cash flow projection template is used for many different reasons, including:
Here’s how to do a cash flow projection in Excel:
Step 1: Download cash flow projection Excel template.
Step 2: Estimate your monthly sources of cash.
Step 3: Estimate all your expenses each period related to company operations and overhead.
Step 4: Totals in the template will be automatically calculated.
Step 5: Verify your cash projection.
You can find more detailed instructions on how to use our cash flow projection template upon download.
The purpose of a cash flow projection template is to estimate future cash inflows and outflows for a business or individual, typically extending several months to several years.
A cash flow projection template includes information that helps you estimate the anticipated cash inflows and outflows for a specific period. The level of detail and complexity can vary based on the needs of the business or individual, but some key components in a cash flow projection template include:
Cash flow projection and cash flow forecast are often used interchangeably, but can be distinguished by timeframe and level of detail. Cash flow projection templates estimate cash inflows and outflows over several months to years, taking into consideration a wider range of financial factors. Cash flow forecast templates, on the other hand, focus on the short-term (week, month, quarter) liquidity needs and opportunities.
Yes, download our cash flow projection Excel template. Then in Google Sheets, follow these steps: