A cash-flow forecast that is not built from the ledger is a wish. We build forward cash and budget versus actual from the same books as the VAT return, so a facility conversation and a tax payment are not two different realities.
How we build it
Opening cash, known receipts, known payments, VAT and payroll dates, and a named assumption list. Since 2024 we have refused to put a ‘sales hockey stick’ in a pack we would show a bank. You can have optimism. It will be labelled.
Monthly actuals
The forecast is useless if nobody compares it. We add that comparison to the management pack when you ask.
Questions we are asked
Will a bank accept this?
As a management document, often. As an audit certificate, no — that is the facility-audit page.
How far forward?
Thirteen weeks is the usual operating view. Twelve months for a budget. Five-year models are a different letter and a different honesty test.
Do we need accounting first?
Yes. Forecasting on an unreconciled bank is decoration.