Maintain a dated cash view with visible assumptions
Keep expected cash movements current and show which periods need a human decision.
- Preparation
- Initial setup followed by the review cadence the founder and accountant choose.
- Difficulty
- Moderate
- Task
- Keep a cash forecast current
Before you start
Get what you need before you start
- Gather current balances, dated receivables, committed payments, and approved estimates.
- Ask an accountant to review the accounting assumptions and choose a useful horizon.
Steps
Work through the method
Use the listed inputs and tools. Check the evidence when you need to verify a step.
Build the dated opening view
Start with checked opening cash. Add each expected inflow and outflow on its expected date, and label it actual, committed, or estimated.
Why it matters: Dates and statuses expose timing and uncertainty that one balance hides.
- Input
- Checked cash balances, receipts, obligations, and estimates.
- Output
- A dated cash view with source and status for every row.
Tools in this stepEvidence for this step
One biotechnology entrepreneur in residence describes financial projections as part of building a business plan and managing stakeholder expectations.
Duke-NUS Centre for Technology and Development: Interview dated 14 August 2017; questions 2, 4, and 5 on financial projections, stakeholder updates, and commercialisation assessment.The Australian Government method starts with opening cash, records incoming and outgoing cash, and calculates closing cash while identifying estimates.
Australian Government business.gov.au: “Completing your cash flow statement”; “Opening balance”, “Cash incoming”, “Cash outgoing”, and “Closing balance” sections, accessed 26 September 2026.
Bring each closing balance into the next period
Calculate each period’s closing cash and use it as the next opening amount. Mark the lowest points and the obligations present there.
Why it matters: The sequence shows where timing creates a decision before the current bank balance changes.
- Input
- The dated opening view.
- Output
- A period-by-period cash view with decision points marked.
Tools in this stepQuickBooks OnlineEvidence for this step
The Australian Government method starts with opening cash, records incoming and outgoing cash, and calculates closing cash while identifying estimates.
Australian Government business.gov.au: “Completing your cash flow statement”; “Opening balance”, “Cash incoming”, “Cash outgoing”, and “Closing balance” sections, accessed 26 September 2026.
Replace estimates when facts arrive
Update changed dates or amounts, keep the previous assumption visible, and record who changed it and why. Ask the accountant to review material uncertainty.
Why it matters: A visible change record prevents a newer estimate from looking like an original fact.
- Input
- New invoices, statements, commitments, and approved estimates.
- Output
- A current forecast with a reviewable change record.
Tools in this stepQuickBooks OnlineEvidence for this step
The Australian Government method starts with opening cash, records incoming and outgoing cash, and calculates closing cash while identifying estimates.
Australian Government business.gov.au: “Completing your cash flow statement”; “Opening balance”, “Cash incoming”, “Cash outgoing”, and “Closing balance” sections, accessed 26 September 2026.
Success checks
Check the result before you finish
- Every row has a date, amount, status, source, and owner.
- Closing cash becomes the next period's opening cash.
- The founder and accountant can identify assumptions and decision points.
Failure modes
Watch for these problems
- A bank balance is treated as the forecast. Add dated receipts and obligations.
- An estimate appears certain. Label it and preserve the assumption.
- A universal runway target appears. Remove it and use the chosen business context.
Tools
Choose the tools you need
Tool
QuickBooks Online
An accounting workspace for receivables reports, invoices, receipt review, reconciliation, exports, recurring templates, and limited user roles.
Check fit, limits and pricingSources
Read the sources behind this practice
Check what each source supports and where the advice has limits.
- Reddit r/smallbusiness: Struggling with cash flow forecastingFirst-hand small-business operator account · Publication date unavailable
- Duke-NUS Centre for Technology and Development: SEE Gayatri, CTED Talk #3: Conversation with an Entrepreneur-in-ResidenceInstitutional interview with an entrepreneur in residence · Publication date unavailable
- Australian Government business.gov.au: Set up a cash flow statementGovernment method guidance · Publication date unavailable
- Intuit QuickBooks Support: Export QuickBooks Online dataOfficial product documentation · Publication date unavailable