Should I do Monthly, Weekly or Daily Cash Flow Forecasting?

The short answer is probably all 3!! Let me elaborate…

Monthly: If your bank balance is comfortable, i.e. not in a critical position and does not fluctuate much mid-month then Monthly would be most suitable for you.

Weekly: If your cash is a little tighter and can fluctuate quite a bit from week to week then I would recommend that Weekly forecasting would suit you best.

Daily: If your cash is very tight, nearing on critical, and you watch your bank balance every day, then Daily forecasting is the one for you. This allows you to manage your cash going out very carefully to ensure you have enough cash in the bank to cover your immediate Cash out events – be that a supplier invoice a direct debit or staff salaries.


What I find is that businesses like to use all 3 formats, yes all 3:

  • For 6 months plus then Monthly format is best as you do not need any more detail than that;
  • For the next 12 weeks then Weekly is good as it gives more detail of the weekly impact of the bigger Cash In and Cash Out events;
  • And for the next 30-45 days then Daily view is worth a check to ensure all is looking good for the immediate future.

The Daily one can be useful as it will prompt you to either chase late payments and/or delay a payment yourself until you have enough funds to honour it.

Happy forecasting….


Alan J McCafferty, CEO & Founder, Simply Cashflow