How to Build a Cash Flow Forecast for the Next 90 Days

Ever feel like your business's finances are on a rollercoaster—one minute there’s cash in the bank, and the next, you’re wondering how you’ll cover payroll?

You’re not alone!

Navigating the ups and downs of running a business is tough, but there’s one tool that can give you peace of mind: a 90-day cash flow forecast. This isn’t just about seeing how much money you have now; it’s about predicting where you’re headed and making decisions with confidence.

Why is it important? 

As a small business owner, you know that cash flow is the lifeblood of your business. But here's the thing—many of us focus on the present without preparing for the future. 

A 90-day forecast helps you to:

✅ see the road ahead 

✅ anticipate challenges 

✅ take action before cash flow issues snowball 

Whether you’re facing seasonal fluctuations or unexpected expenses, forecasting ensures you’re never caught off guard.

Step-by-Step Guide to Building a 90-Day Forecast

Creating a cash flow forecast might sound intimidating, but I promise it’s not as complex as it seems. Here’s a simple way to get started:

1. Gather Your Financial Data

• Look at the past few months of your income and expenses. This will give you a realistic baseline for your forecast.

2. Project Your Income 

• Estimate how much money you expect to come in over the next three months. Be realistic—if your income is irregular, factor in your best and worst-case scenarios.

3. Estimate Your Expenses 

• Now, list out all your upcoming expenses. Don’t forget things like rent, payroll, taxes, and even one-off payments.

4. Calculate Cash Flow 

• Subtract your estimated expenses from your projected income. This will show you if you’ll have enough cash on hand or if you might run short during certain weeks or months.

5. Adjust and Plan

• If you see a cash flow crunch coming, now’s the time to plan for it. Maybe that means cutting unnecessary expenses, increasing your sales efforts, or securing a short-term loan to smooth things out. 

One of the biggest challenges small business owners face is irregular income and expenses. It can feel impossible to plan for when you’re not sure what’s coming in or going out. But don’t worry, there are ways to manage this:

• Create a Buffer - Aim to keep a small cash reserve to cover the leaner months. Even just one month’s worth of expenses can give you breathing room.
• Be Conservative in Your Projections - When income is unpredictable, it’s better to underestimate earnings and overestimate expenses. That way, you’re prepared for the worst while still striving for the best.
• Review and Revise Regularly - Your forecast isn’t set in stone. Revisit it often to see how things are playing out and make adjustments as needed.

Resources to Help You Along the Way

You don’t have to do this all alone, there are some great tools to help simplify the process and give you even more insights:

• QuickBooks Cash Flow Planner: This feature in QuickBooks Online can give you a clear picture of your cash flow with minimal effort. You can connect your bank accounts, set goals, and track cash flow in real-time.
• Dave Ramsey’s EveryDollar: Whether for personal or business finances, EveryDollar helps you budget, allocate funds, and project future cash flow. It's a fantastic tool to stay on top of your financial situation.
• Fathom: For more advanced cash flow forecasting, Fathom allows you to create in-depth reports and analyses to support your business’s long-term financial health. 

Conclusion

Ready to take control of your cash flow? Start by downloading EveryDollar to forecast your personal finances or tap into QuickBooks Online’s cash flow planner for your business. If you want more personalized advice, book a 20-minute consultation with me today! And don’t forget to pre-order Mastering QuickBooks 2025—your guide to mastering your business finances once and for all.