{"id":3104,"date":"2025-06-24T08:47:00","date_gmt":"2025-06-24T08:47:00","guid":{"rendered":"https:\/\/gothrive.uk\/?p=3104"},"modified":"2026-03-31T13:05:01","modified_gmt":"2026-03-31T13:05:01","slug":"agency-cashflow-forecast","status":"publish","type":"post","link":"https:\/\/gothrive.uk\/index.php\/2025\/06\/24\/agency-cashflow-forecast\/","title":{"rendered":"Money, money money: How to forecast your agency\u2019s cashflow"},"content":{"rendered":"\n<div class=\"wp-block-uagb-container uagb-block-4f517f31 alignfull uagb-is-root-container\"><div class=\"uagb-container-inner-blocks-wrap\">\n<div class=\"wp-block-uagb-container uagb-block-776da628\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<div class=\"wp-block-uagb-container uagb-block-138d36ae\">\n<div class=\"wp-block-uagb-container uagb-block-8d4257f8\">\n<div class=\"wp-block-uagb-container uagb-block-e2948b0a\">\n<div class=\"wp-block-uagb-info-box uagb-block-5f3de5f5 uagb-infobox__content-wrap  uagb-infobox-icon-above-title uagb-infobox-image-valign-top\"><div class=\"uagb-ifb-content\"><div class=\"uagb-ifb-title-wrap\"><\/div><\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-b55b282c\"><h2 class=\"uagb-heading-text\"><strong>Money, money money: How to forecast your agency\u2019s cashflow<\/strong><\/h2><\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-44cc7760\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-0a6ba344\"><p class=\"uagb-heading-text\"><em>Updated 24th June 2025 &#8211; by <a href=\"https:\/\/www.linkedin.com\/in\/paulmug\/\" target=\"_blank\" rel=\"noreferrer noopener\">Paul Muggeridge-Breene,<\/a> Thrive CEO<\/em><\/p><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>It\u2019s a cliche for a good reason: cash is king in any business. There can\u2019t be many agency founders that haven\u2019t experienced anxiety about cashflow, often for extended periods. It leads to a lack of confidence in making decisions and an inability to take the calculated risks required to grow an agency.<\/p>\n\n\n\n<p>This is why cashflow forecasting is such a critical part of <a href=\"https:\/\/gothrive.uk\/index.php\/2024\/04\/19\/take-control-agency-finances\/\">taking control of your agency\u2019s finances<\/a>. Knowing what your bank balance will look like over the coming months will provide the confidence you need and, most importantly, will help you avoid cashflow issues.<\/p>\n\n\n\n<p>Here\u2019s how to build your cashflow forecast:<\/p>\n\n\n\n<p><strong>1) Understand the basics<\/strong><\/p>\n\n\n\n<p>Your forecast will show you your predicted cash balance at regular intervals into the future. Generally, a monthly view will be sufficient &#8211; i.e. forecasting the cash balance on the last day of each month. But you may want a weekly or even daily view, if you\u2019re facing a cashflow challenge. Your forecast should extend at least three months into the future, and ideally six.<\/p>\n\n\n\n<p><strong>2) Choose your method<\/strong><\/p>\n\n\n\n<p>Possibly the most efficient way to forecast your cashflow is to use a plugin to your finance software (eg the Float plugin for Xero), as some elements of the forecast will be included and updated automatically. But there\u2019s still plenty of manual work required with this method, and taking account of the automatic updates can be fiddly at times. You can also use a spreadsheet for fully manual cashflow forecasting, which can involve a bit more work but gives you greater control.<\/p>\n\n\n\n<p>I\u2019ll focus on using a simple spreadsheet here, but the general principles apply to any approach. Start by creating your spreadsheet structure, with headers for date, transaction, cash in, cash out, and balance. In row 2, enter today\u2019s date and today\u2019s opening cash balance.<\/p>\n\n\n\n<p><strong>3) Include all incoming payments<\/strong><\/p>\n\n\n\n<p>Now start adding all expected incoming payments, one per row. Be systematic and comprehensive with this &#8211; you need to go through every invoice you\u2019ve already sent and include them in your sheet, with the date you expect the payment to land in your bank account. Then add all invoices you expect to send over the coming weeks and months, and when they\u2019re likely to be paid. At this stage, only include invoices for confirmed work. Remember to include the full amount of each invoice, including VAT.<\/p>\n\n\n\n<p><strong>3) Include all outgoings<\/strong><\/p>\n\n\n\n<p>Next, add all the outgoings you\u2019ll be incurring, again including the date you\u2019ll be paying each one. Be sure to include everything here &#8211; payments for salaries, contractors, regular software subscriptions, etc. Don\u2019t forget tax payments &#8211; PAYE, VAT and corporation tax. And be sure to include any additional costs you\u2019re expecting to incur &#8211; eg any new hires, etc.<\/p>\n\n\n\n<p><strong>4) Format your forecast<\/strong><\/p>\n\n\n\n<p>Now that you have a list of all of your incoming and outgoing payments, you want to arrange them all in date order. In Google Sheets, click on the \u201cdate\u201d header cell, go to the Data menu and choose Sort sheet &#8211; Sort sheet by column A (A-Z). In Excel, go to the Data menu and click on the icon that shows an A and a Z with a down arrow. Once the data is sorted, enter the following formula into cell E3, which should be the cell directly below today\u2019s opening balance: =E2+C3-D3. This takes the previous balance, adds any incoming payments and deducts any outgoing payments, to create the updated balance. Copy cell E3 right down the column, so that each row has a new updated balance.<\/p>\n\n\n\n<p><strong>5) Review your forecast<\/strong><\/p>\n\n\n\n<p>Your forecast is now ready to review. You can go down your list, finding the final entry for each month (which is your forecast closing balance) and highlighting it in some way for ease of reading. What is your forecast showing you? Does it reveal any potential difficult moments coming up, with a balance getting close to (or even below) zero? Do check you\u2019ve captured all of your incoming payments as a first step, and be aware that it\u2019s common for largely project-based agencies with little future visibility to have cashflow forecasts that fall significantly in month three onwards (which is why aiming to have a cash buffer available is so important).<\/p>\n\n\n\n<p>You\u2019ll notice that I\u2019ve deliberately left out any pipeline-related income at this stage. It adds a layer of complexity that\u2019s beyond this article, and it\u2019s always important to have a view of cashflow that specifically excludes pipeline. However, it can also be helpful to create a separate forecast that includes it.<\/p>\n\n\n\n<p>Regularly updating and reviewing your cashflow forecast &#8211; and taking action to avoid any difficulties &#8211; should go a long way in helping you feel in control of your agency\u2019s finances.<\/p>\n\n\n\n<p><em>Our\u00a0financial dashboard tool <a href=\"https:\/\/pulsedashboard.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Pulse<\/a> has been designed specifically for agencies, to provide founders with confidence and clarity, and to help make key business decisions<\/em>.<\/p>\n\n\n\n<p><em><em><em><em><a href=\"https:\/\/www.linkedin.com\/in\/paulmug\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Paul Muggeridge-Breene<\/em><\/a><em>&nbsp;is an exited agency founder, qualified accountant, certified coach, former international journalist and a member of the British Psychological Society. Please&nbsp;<a href=\"https:\/\/gothrive.uk\/index.php\/contact\/\">get in touch<\/a>&nbsp;if you\u2019d like to discuss how Thrive can help you.<\/em><\/em><\/em><\/em><\/em><\/p>\n\n\n\n<div class=\"wp-block-uagb-buttons uagb-buttons__outer-wrap uagb-btn__default-btn uagb-btn-tablet__default-btn uagb-btn-mobile__default-btn uagb-block-f3d1076c\"><div class=\"uagb-buttons__wrap uagb-buttons-layout-wrap \">\n<div class=\"wp-block-uagb-buttons-child uagb-buttons__outer-wrap uagb-block-a08e8b05 wp-block-button is-style-outline\"><div class=\"uagb-button__wrapper\"><a class=\"uagb-buttons-repeater wp-block-button__link\" aria-label=\"\" href=\"index.php\/about\/\" rel=\"follow noopener\" target=\"_self\" role=\"button\"><div class=\"uagb-button__link\">READ MORE<\/div><\/a><\/div><\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Cashflow forecasting provides the confidence you need to make key business decisions.<\/p>\n","protected":false},"author":1,"featured_media":3106,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"no-sidebar","site-content-layout":"plain-container","ast-site-content-layout":"normal-width-container","site-content-style":"unboxed","site-sidebar-style":"unboxed","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"enabled","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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