8/13/2023 0 Comments Restaurant cashflow weekly planner![]() ![]() Breaking the business down with weekly cash flow reports captures the granular movements that can be overlooked if you’re using monthly, quarterly, or yearly intervals. ![]() For example, cash inflows could be large one week if a large amount of receivables are collected, but outflows could be huge the next if payroll and rent are due. The weekly interval forces companies to understand the details of their business at a more granular level. Weekly cash forecasts are used to project a company’s liquidity over the medium term, estimating the timing and amounts of cash inflows and outflows. Therefore, it’s my strong belief that weekly cash forecasts are crucial for businesses large and small, healthy or distressed, and across all sectors. In almost all cases, the involved companies wished that they had conducted the analysis sooner. Through my time in private equity and consulting, I have witnessed how beneficial the compilation of weekly cash forecasts can be, in industries ranging from distribution and manufacturing, to fitness and services. And even still, the analysis is often hastily executed and inaccurate. Therefore, people often only prioritize the weekly cash forecasts in distressed situations, when it is too late to take corrective actions. It doesn’t help that companies generally tend not to focus on their liquidity needs until they are forced to do so. Most finance professionals do not get nearly as excited about building it as they do about building a projection model for an acquisition or investment. When most finance professionals hear the term “13 week cash forecast,” they view it as a burden-one more task to appease an overbearing lender. The fact is that one of the earliest lessons I learned in business was that balance sheets and income statements are fiction, cash flow is reality. Why Every Business Should Build Weekly Cash Flow Forecasts If there is a deficit in the week end cash balance, either draw on the credit facility or figure out how to increase receipts or decrease disbursements. Lastly, subtract disbursements from cash receipts for net cash flow. Then stratify vendors into critical and non-critical vendors, paying critical vendors first. Step 3: Focus on cash payments, scheduling out fixed payments and what dates they must be made on.Step 2: Understand how the business makes sales and collects cash, choosing between four general business models: contractual, recurring, one-time lump sum, and hybrid.Fill in 3-4 weeks of actual data to draw a trend, and then project from there. Add week-ending dates across the top, and down the left-hand column, create rows for cash receipts and disbursements. How to construct a weekly cash flow forecast ![]()
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