Monthly Rolling Cash Flow Projection Excel Model (Excel XLSX)

Monthly Rolling Cash Flow Projection is crucial for businesses as it offers a real-time view of their financial health. By forecasting incoming and outgoing cash, it enables proactive management of liquidity, preventing potential crises. This tool helps in identifying trends, anticipating shortfalls, and optimizing resource allocation. It assists in timely bill payments, debt management, and capital allocation, reducing financial stress. Additionally, it aids in aligning operational decisions with financial goals, fostering better financial stability and agility for businesses, ensuring they can meet their obligations and seize opportunities in a dynamic market.

PURPOSE OF MODEL
User-friendly Excel model for the preparation of a 12-month rolling cash flow forecast for a generic new or existing business. The model allows the user to input cash flow assumptions for up to 3 revenue streams, 3 variable cost categories for each revenue stream, 5 staff cost categories and 12 other expense categories all of which can be easily extended if required. The model follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations

KEY OUTPUTS
The model is generic and not industry-specific. The key outputs include:
•  Projected full Cash Flow Statement with splits by Operating, Financing and Investing activities presented on a monthly basis and summarised on a full year basis.
•  Dashboard which includes the following:
Summarised projected Cash Flow Statement
Chart showing net cash movement by forecast month split by revenue, variable costs, other expenses, financing activities and investment activities.
Line Graph showing cash balance development over next 12 months.

KEY INPUTS
Inputs are split into setup inputs, latest actuals and projection assumptions. Inputs include user-friendly line item explanations and input validations to help users understand purpose of input and populate correctly.
Setup Inputs:
•  Name of business
•  Currency
•  First projection month and year
•  Naming for Revenue Streams, Variable Costs, Other Expenses and Payment Patterns
•  Payment patterns on monthly basis

Actuals Inputs:
•  Cash Opening Balance
•  Trade Receivables Opening Balance
•  Trade Payables Opening Balance

Projection Inputs:
•  Revenue inputs including sales volume, sales prices, cash vs credit sale percentages and average credit terms offered;
•  Variable cost inputs including variable cost per unit, cash vs credit purchase percentages and average credit terms received;
•  Staff cost inputs including staff numbers and average staff costs per month
•  Other expense inputs including Annual Cost and payment pattern selection.
•  Other Cash Flow inputs including, Tax cash flows, Investment cash flows, borrowing cash flows, dividends and share capital cash flows.

MODEL STRUCTURE
The model contains, 7 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Cash Flow' and ‘o_Charts'

System tabs include:
•  A 'Front Sheet' containing a disclaimer, instructions and contents;
•  A Checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
•  The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
•  The model allows for a 1-year rolling projection on a monthly basis and summarised on an full year basis;
•  The model allows the user to model 3 separate revenue streams on a Price x Volume basis;
•  Costs are split into: variable and other costs for better driver-based forecasting;
•  Model included up to 15 user-defined monthly payment patterns which are used to calculate the settlement of ‘Other expenses' allowing significant flexibility;
•  Business Name, currency, starting projection period are fully customisable;
•  Revenue, Cost and Payment Pattern descriptions are fully customisable;
•  The model includes instructions, line item explanations, checks and input validations to help ensure input fields are populated accurately;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.