In our previous article, we provided guidance to small businesses about the importance of cash flow forecasting and shared with them an easy to use Excel template that can be used to fulfil their cash flow forecasting needs.

Below we have briefly explained the nature of first few line items of cash flow forecast template on how to forecast each of those activities. Each line item is classified into operating, investing, and financing activity so that you can establish a link between this template and traditional cash flow statement.


Template Cell Ref: A9

Item description: Cash sales

What & where to report in template: Projected cash sales for each month from cells C9 to N9.

Source: Projected / budgeted income statement or actual sales for past months adjusted with anticipated trend

Activity classification: Operating


Template Cell Ref: A10

Item description: Cash collected agains credit sales

What & where to report in template: Cash collections against credit sales or accounts receivable from cells C10 to N10.

Source: Expected cash collection from credit sales as per credit terms

Activity classification: Operating


Template Cell Ref: A11

Item description: Interest received

What & where to report in template: Expected interest income on savings account/short term deposits or on loans & advances from cells C11 to N11.

Source: Calculate interest income from closing bank balance in projected cash flow statement and loan repayment schedules, if you have given out any loans

Activity classification: Operating / Investing (once chosen must be applied consistently)


Template Cell Ref: A12

Item description: Proceeds from sale of assets

What & where to report in template: Any amount that is expected to be realised from sale of business assets from cells C12 to N12

Source: Projected/budgeted financial statements / any existing plan of sale

Activity classification: Investing


Template Cell Ref: A13

Item description: Proceeds from sale of investments

What & where to report in template: Any proceeds expected from realization of investments from cells C13 to N13

Source: Projected/budgeted financial statements / any existing plan of sale

Activity classification: Investing


Download explanation of all line items of cash flow forecast template.

Cash flow template explained