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What is a cash flow forecast?

A cash flow forecast projects the money actually moving in and out of your bank account over a future period — usually 12 months — so you can see when cash will be tight and plan ahead. It is different from a profit forecast, because profit ignores when customers actually pay.

How do I build a 12-month cash flow forecast?

Start with your opening cash balance, add expected receipts for each month, deduct expected payments, and carry the closing balance forward as the next month's opening balance. Repeat for twelve months and look for the lowest point.

Why is my business profitable but short of cash?

Profit is recorded when you invoice; cash arrives when the customer pays. Slow collections, inventory build-up, loan repayments, tax payments and capital expenditure all consume cash without appearing as costs in your profit figure.

What is a cash shortfall?

A cash shortfall is a month where your projected closing balance goes below zero — you would not have enough cash to meet payments. Spotting it early gives you time to accelerate collections, defer spend or arrange funding.

What are scenarios used for?

Scenarios let you test the same business under different conditions. A conservative case reduces expected receipts and increases costs, so you can see how much headroom you really have if things go slower than planned.

Should VAT and corporate tax be included?

Yes. For cash flow purposes include the actual VAT and corporate tax payments you expect to make, on the dates you expect to pay them, because they are real cash outflows.

Cash Flow Forecast Tool | Free 12-Month Cash Flow Projection

Your monthly figures

Currency

Opening cash balance

AED

Cash and bank balance at the start of month 1.

Scenario

Optimistic increases receipts 10% and reduces costs 5%; conservative reduces receipts 15% and increases costs 10%.

Monthly cash inflows

Sales receipts

AED

Customer collections

AED

Financing / loans received

AED

Investments / capital injected

AED

Other income

AED

Monthly inflow growth

Expected month-on-month change in receipts.

Baseline inflows: AED 0.00

Monthly cash outflows

Salaries & wages

AED

Rent

AED

Suppliers

AED

Taxes (VAT / CT)

AED

Loan repayments

AED

Capital expenditure

AED

Other expenses

AED

Monthly outflow growth

Expected month-on-month change in payments.

Baseline outflows: AED 0.00

Most businesses that fail are profitable on paper — they simply run out of cash. A rolling 12-month forecast shows when money actually lands in and leaves your account, so you can act before a shortfall becomes a crisis.

The formulas

Net cash flow

Total inflows − Total outflows

Closing cash

Opening cash + Net cash flow

Next month opening

Previous month closing

Worked example

Opening cashAED 200,000

InflowsAED 350,000

OutflowsAED 420,000

Net cash flowAED -70,000

Closing cashAED 130,000

Key terms

Cash inflow: Money actually received — customer payments, loans drawn, capital injected.
Cash outflow: Money actually paid — payroll, rent, suppliers, tax, loan repayments, equipment.
Cash shortfall: A month where the projected closing balance falls below zero.

Frequently asked questions

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This calculator provides indicative results based on the figures you enter. It is not financial, tax, legal, audit, valuation or investment advice, and it is not a formal report of any kind. Results depend entirely on your inputs and assumptions. Please seek professional advice before acting.

12-Month Cash Flow Forecast