What is a 13-week cash flow forecast?
A 13-week cash flow forecast is a week-by-week projection of cash receipts and payments for the next quarter. It shows the expected cash balance at the end of each week, so a business can see shortfalls early and act on them. Lenders, turnaround advisers and boards often ask for one when liquidity is tight.
Also called13-week cash flowTWCFshort-term cash forecast
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- Horizon
- 13 weeks, one quarter
- Method
- Direct receipts and payments
- Revised
- Weekly, with actual vs forecast
How a 13-week cash flow forecast works
It is a direct forecast: instead of starting from profit, it lists actual cash expected in and out, by week. Receipts come from the receivables ledger and expected customer payment behaviour, plus other income. Payments come from the payables ledger and payment runs, payroll dates, rent, tax and loan repayments, and planned capital spending. Opening cash is the actual bank balance, and the closing balance each week is compared with the minimum cash needed and any loan facility. Each week, finance compares the previous week's forecast with what actually happened, explains the differences and rolls the forecast forward by a week, which steadily improves accuracy. Thirteen weeks covers a full quarter with enough detail to manage timing, such as delaying a payment or chasing a large receipt. Longer-term cash forecasts are usually monthly and built from the three-statement model.
Common questions
Why 13 weeks?+
Thirteen weeks is one quarter: long enough to spot a coming shortfall and act, short enough to forecast receipts and payments in detail from known invoices and commitments.
What is the difference between a direct and an indirect cash forecast?+
A direct forecast lists expected receipts and payments. An indirect forecast starts from forecast profit and adjusts for non-cash items and working capital, and suits longer horizons.
Who uses a 13-week cash flow forecast?+
Finance teams managing tight liquidity, lenders monitoring covenants, restructuring advisers and boards. Many healthy companies also run one to manage day-to-day cash.
Software for 13-week cash flow forecasts
CentimeAP, AR, forecasting and banking in one cash flow view.Profile →
PanaxAI cash visibility and forecasting across multi-entity groups.Profile →
EmbatReal-time treasury with automated reconciliation and forecasting.Profile →
Round TreasuryTreasury for startups managing cash, yield and runway.Profile →Part of Accountio’s accounting technology coverage · Glossary
