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Cash flow forecasting for owner-operated businesses

Profit and cash are not the same thing. A forecast shows you where cash will be in the coming weeks and months, so payroll, equipment payments, and tax bills never arrive as a surprise.

Why profitable businesses run short of cash

Customers pay weeks after you pay your crew and suppliers
Equipment and truck payments take cash that never shows up as an expense
Seasonal swings leave slow months with the same fixed costs
Tax payments and owner distributions arrive in large amounts
Growth needs cash for materials and labor before the invoice is paid

What a good forecast includes

A short-term view, usually 13 weeks, updated often
A rolling 12-month view for bigger planning
Known large outflows: taxes, loan payments, insurance, equipment
Scenarios, such as customers paying late or a large job slipping a month

How I build it

I start from your bank balances, receivables, payables, payroll, and scheduled work. Each month I compare the forecast to what actually happened and tighten the next one.

What you can do with it

Time an equipment purchase for when cash can absorb it
Set owner distributions you can sustain
Decide whether you need a line of credit, and how much
Plan hiring around cash instead of hope

Forecasting pairs naturally with job costing and WIP reporting, since both show where cash is tied up.

Let's look at your numbers together.

Send a note with a little about your business. I reply personally, and the first conversation costs nothing.

Email Zach zach@zwilsonconsulting.com 218-850-7555