Business Glossary
What Is a Rolling Cashflow Forecast?
A rolling cashflow forecast is a constantly updated projection of cash inflows and outflows, typically covering the next 13 weeks. Unlike a static annual budget, it rolls forward each week — giving a continuous, current view of cash position.
The Formula
Rolling Forecast Update: Drop Week 1 (past) → Add Week 14 → Update near-term weeks with actuals
Worked Example — UK SME
A UK SME updates its 13-week rolling forecast every Monday. Week 1 actual receipts: £18,400 vs £21,000 forecast — a £2,600 shortfall. The forecast is updated and week 14 added. The shortfall cascades forward, flagging a potential cash constraint in week 8 — giving 8 weeks to act.
UK Benchmark
📊 13-week rolling forecasts are standard for businesses in growth, restructuring, or with tight cashflow. Required by many UK lenders as a condition of overdraft facilities. For stable businesses, a monthly rolling forecast over 6 months is usually sufficient.
Common Questions
What is the difference between a cashflow forecast and a budget?
A budget is an annual plan set at the start of the year — it becomes progressively stale. A rolling forecast is updated with actuals weekly and extended forward constantly. The forecast is for cashflow management; the budget is for performance management.
How accurate does a rolling forecast need to be?
Near-term weeks (1–4) should be highly accurate. Weeks 5–8 are directional. Weeks 9–13 are indicative. The value is early warning, not perfect accuracy.
What software do UK SMEs use for rolling cashflow?
Xero and QuickBooks have basic forecasting. Float, Futrli, and Spotlight Reporting are dedicated tools. Many UK SMEs use Excel models — more flexible but require manual updating.
Related terms