Here's a template of the 13-week cash flow forecast I use as a Contract CFO for $5-$25M commercial general contracting clients: 13-Week Cash Flow Forecast Template for GC's
1. Enter your A/R (Owner Billings) by project based on when you expect to receive payment. Pull amounts from QBO/accounting software or Procore/CM platform. Use projected monthly billings for those not yet billed/extended forecast.
2. Enter your corresponding A/P (Subcontractor Apps/Payments) by project for the same owner billing period. Timing of A/P is dependent on receipt of owner billings in above section (pay when paid).
3. Enter any misc. subcontractor or vendor payments that carryover from previously approved AP/check runs but have not yet been processed/cleared the bank account in the previous weeks.
4. Enter your expected/planned overhead expenses by line item. Grab your last 90-120 days of bank statements. Comb through to find trends and timing (day of month) of past expenses (which now become future projections). You'll likely have 70%-80% recurring expenses month over month. You'll eventually find the quarterly expenses.
5. Plug in any debt payments and/or planned financing activities in the next section.
6. Enter your open/outstanding check total from QBO or check register to make sure you account for net/available cash on hand.
7. Rollover once per week (recommended) or bi-weekly. Extend expected overhead expenses into the new week 13 and add in any newly projected A/R and A/P amounts above. Reformat as necessary.
Tips:
1. Keep it simple and build out as you go. Start with 6 weeks if needed and expand to a full 13-week forecast over time.
2. Goal is to get started and hone-in week after week. Weekly or bi-weekly adjustments can vary greatly at first.
3. Play with it. Use as a strategic tool for planning upcoming expenses and possible scenarios - (Ex. - "Can I afford a couple new trucks for Supers/PM's etc.?" OR "Can I afford to payoff this LOC in full?"). Plug those in and look at your adjusted projected ending balances.
Reach out with any questions. Let me know if you'd like to discuss the benefits and major bottom-line impact an accurate cash flow forecast can have on your general contracting business as part of a "done-for-you" CFO service. You can schedule a no-charge call here: https://www.consultfw.com/contact.
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