{"id":20327,"date":"2026-10-27T09:06:58","date_gmt":"2026-10-27T03:36:58","guid":{"rendered":"https:\/\/befreeltd.com\/uk\/?p=20327"},"modified":"2026-10-23T11:17:00","modified_gmt":"2026-10-23T05:47:00","slug":"what-is-a-cash-flow-projection","status":"publish","type":"post","link":"https:\/\/befreeltd.com\/uk\/resources\/blogs\/what-is-a-cash-flow-projection\/","title":{"rendered":"What Is a Cash Flow Projection and What Should Your Business Include in One?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"20327\" class=\"elementor elementor-20327\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6c34a537 e-flex e-con-boxed e-con e-parent\" data-id=\"6c34a537\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-67797eaf elementor-widget elementor-widget-text-editor\" data-id=\"67797eaf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Cash flow problems rarely announce themselves. A business can be profitable on paper and still struggle to pay suppliers, HMRC or staff on time. A reliable cash flow projection helps UK SMEs see these pressure points before they arrive.<\/p><p><strong>What is a cash flow projection?<\/strong> A cash flow projection is an estimate of the money expected to enter and leave your business over a set period, usually 12 months, broken down week by week or month by month. It shows your expected closing cash balance at the end of each period, so you can plan ahead rather than react to a shortfall.<\/p><p>Below, we explain what a dependable projection should contain, how to account for timing and seasonality, and how to keep it accurate over time.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-27a8ee3 elementor-widget elementor-widget-heading\" data-id=\"27a8ee3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Is a Cash Flow Projection and Why Does It Matter?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b1c78f9 elementor-widget elementor-widget-text-editor\" data-id=\"b1c78f9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Many owners ask what is cash flow forecasting and whether it differs from a projection. In practice, the terms are used almost interchangeably. Both look forward at expected cash movements, and both rely on realistic assumptions rather than accounting profit.<\/p><p>What is the purpose of a cash flow forecast? Its purpose is to show whether you will have enough cash to meet your obligations as they fall due. That makes it useful for:<\/p><ul><li>Spotting shortfalls early enough to act<\/li><li>Deciding when to hire, invest or take on new contracts<\/li><li>Supporting applications for lending or overdraft facilities<\/li><li>Planning for tax liabilities such as VAT, PAYE, NIC and Corporation Tax<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-43700bb elementor-widget elementor-widget-text-editor\" data-id=\"43700bb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tA projection differs from a profit and loss account. Profit records income and costs when they are earned or incurred. A cash flow projection records money when it actually moves in or out of your bank account. The gap between the two is often where problems begin.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-72ab99a elementor-widget elementor-widget-heading\" data-id=\"72ab99a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Which Cash Receipts and Payments Should the Projection Include?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6fd8160 elementor-widget elementor-widget-text-editor\" data-id=\"6fd8160\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tA reliable projection captures every significant inflow and outflow, not just the obvious ones.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dee664f elementor-widget elementor-widget-text-editor\" data-id=\"dee664f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Cash receipts to include:<\/strong><\/p><ul><li>Customer payments on invoices, based on realistic collection dates<\/li><li>Cash or card sales<\/li><li>Grants, loans or director loan injections<\/li><li>VAT refunds, where applicable<\/li><li>Asset sale proceeds or other one-off income<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7e1ea20 elementor-widget elementor-widget-text-editor\" data-id=\"7e1ea20\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Cash payments to include:<\/p><ul><li>Supplier invoices and stock purchases<\/li><li>Wages, along with employer NIC and pension contributions<\/li><li><a href=\"https:\/\/befreeltd.com\/uk\/resources\/blogs\/paye-tax-rates-uk\/\">PAYE<\/a> liabilities due to HMRC<\/li><li>CIS deductions, for businesses operating in construction<\/li><li>VAT payments and <a href=\"https:\/\/befreeltd.com\/uk\/resources\/blogs\/corporate-income-tax-uk\/\">Corporation Tax<\/a><\/li><li>Rent, utilities, insurance and software subscriptions<\/li><li>Loan repayments and interest<\/li><li>Capital expenditure, such as equipment or vehicles<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4301087 elementor-widget elementor-widget-text-editor\" data-id=\"4301087\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Sole traders and partners should also set aside funds for Self Assessment payments on account, which fall on 31 January and 31 July. These are easy to overlook and can be substantial.<\/p><p>If you are unsure which items belong in your projection, the <a href=\"https:\/\/befreeltd.com\/uk\/services\/accounting-outsourcing\/\">Befree accounting team<\/a> can help you build a structure that reflects how your business operates.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e61dae1 elementor-widget elementor-widget-heading\" data-id=\"e61dae1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Should Payment Timing and Seasonal Changes Be Reflected in the Projection?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8fb5251 elementor-widget elementor-widget-text-editor\" data-id=\"8fb5251\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Timing is where most projections lose accuracy. Recording a sale in the month you issue the invoice is misleading if your customers typically pay in 45 or 60 days.<\/p><p><strong>To reflect timing realistically:<\/strong><\/p><ul><li><strong>Use actual payment behaviour:<\/strong> Review how long customers genuinely take to pay, not the terms on your invoices.<\/li><li><strong>Map your payment dates:<\/strong> Place supplier payments, payroll, VAT quarters and PAYE settlement dates in the month cash leaves your account.<\/li><li><strong>Account for MTD:<\/strong> If you are VAT-registered, Making Tax Digital requires digital records and quarterly submissions, so build these deadlines into your schedule.<\/li><li><strong>Factor in seasonality:<\/strong> Retailers, hospitality businesses and many service providers see predictable peaks and troughs. Use at least one or two years of past data to estimate these patterns.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-88814a9 elementor-widget elementor-widget-text-editor\" data-id=\"88814a9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tSeasonal dips are not a problem in themselves. They become one when a business has not planned for the months in which costs continue, but income slows.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-331b71b elementor-widget elementor-widget-heading\" data-id=\"331b71b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Which Scenarios Should Be Tested for Potential Cash Shortfalls?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ac4007e elementor-widget elementor-widget-text-editor\" data-id=\"ac4007e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tA single forecast shows one possible future. A dependable projection tests several. This is often called scenario planning, and it helps you understand how resilient your business is.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c260d28 elementor-widget elementor-widget-text-editor\" data-id=\"c260d28\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Consider modelling three scenarios:<\/strong><\/p><ol><li><strong>Base case:<\/strong> your most likely outcome, based on current trading and known commitments.<\/li><li><strong>Downside case:<\/strong> reduced sales, slower customer payments or a lost major client.<\/li><li><strong>Upside case:<\/strong> faster growth, a new contract or earlier collections.<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-20a4575 elementor-widget elementor-widget-text-editor\" data-id=\"20a4575\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Within these, test specific risks, such as:<\/strong><\/p><ul><li>A key customer paying 30 days late<\/li><li>A rise in supplier costs or employer NIC<\/li><li>An unexpected tax bill<\/li><li>A delay in a grant or loan drawdown<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b4c4c01 elementor-widget elementor-widget-text-editor\" data-id=\"b4c4c01\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tFor each scenario, identify the point at which your cash balance would fall below a safe minimum. That gives you time to arrange finance, adjust spending or tighten credit control before the problem becomes urgent.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3bc4c2c elementor-widget elementor-widget-heading\" data-id=\"3bc4c2c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Should Actual Cash Movements Be Used to Update the Projection?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-37f5a26 elementor-widget elementor-widget-text-editor\" data-id=\"37f5a26\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>A projection is not a document you build once and file away. Its value depends on how often you compare it with reality.<\/p><p><strong>A simple review routine works well:<\/strong><\/p><ul><li><strong>Compare forecast with actual<\/strong> at the end of each month, or weekly if cash is tight.<\/li><li><strong>Investigate material variances.<\/strong> Was a customer late? Did a cost arrive earlier than expected?<\/li><li><strong>Update your assumptions.<\/strong> If invoices are consistently paid later than forecast, adjust your collection timings.<\/li><li><strong>Roll the projection forward.<\/strong> Add a new month at the end so you always look ahead by the same period.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-12fbae0 elementor-widget elementor-widget-text-editor\" data-id=\"12fbae0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Over time, this process makes your forecasts more accurate and gives you a clearer view of your business&#8217;s cash patterns.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a9616c1 elementor-widget elementor-widget-heading\" data-id=\"a9616c1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conclusion\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8480df7 elementor-widget elementor-widget-text-editor\" data-id=\"8480df7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tA reliable cash flow projection includes all significant receipts and payments, reflects when cash really moves, tests realistic scenarios and is updated regularly against actual results. For UK SMEs managing HMRC deadlines, VAT cycles and fluctuating demand, it is one of the most practical tools for staying in control.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-db67dd6 elementor-widget elementor-widget-heading\" data-id=\"db67dd6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Need Help Building a Reliable Cash Flow Projection?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-131ff1c elementor-widget elementor-widget-text-editor\" data-id=\"131ff1c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Befree works with SMEs to build clear, realistic projections that support better decisions. To discuss your business, <a href=\"https:\/\/befreeltd.com\/uk\/contact-us\/\">contact Befree<\/a> today.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-77ca139 elementor-widget elementor-widget-heading\" data-id=\"77ca139\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">FAQs\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0bb5705 elementor-widget elementor-widget-n-accordion\" data-id=\"0bb5705\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:300,&quot;sizes&quot;:[]},&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1220\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1220\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> What is a cash flow projection in simple terms? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1220\" class=\"elementor-element elementor-element-ae487af e-con-full e-flex e-con e-child\" data-id=\"ae487af\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4aba312 elementor-widget elementor-widget-text-editor\" data-id=\"4aba312\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tIt is an estimate of the cash your business expects to receive and pay out over a future period, showing your expected bank balance at the end of each week or month.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1221\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1221\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> How far ahead should a cash flow projection look? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1221\" class=\"elementor-element elementor-element-468e7c6 e-con-full e-flex e-con e-child\" data-id=\"468e7c6\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-cbf9e40 elementor-widget elementor-widget-text-editor\" data-id=\"cbf9e40\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tMost SMEs project 12 months ahead, with more detailed weekly forecasts for the next 13 weeks. Businesses with tight cash may prefer shorter, more frequent reviews.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1222\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1222\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> How often should I update my cash flow projection? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1222\" class=\"elementor-element elementor-element-517b6d1 e-con-full e-flex e-con e-child\" data-id=\"517b6d1\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-cff5db2 elementor-widget elementor-widget-text-editor\" data-id=\"cff5db2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tReview it at least monthly, comparing forecast figures with actual bank movements. Weekly updates are sensible if cash is tight or trading is volatile.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1223\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1223\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> Is a cash flow projection the same as a profit and loss forecast? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1223\" class=\"elementor-element elementor-element-2387fab e-con-full e-flex e-con e-child\" data-id=\"2387fab\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-856c676 elementor-widget elementor-widget-text-editor\" data-id=\"856c676\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tNo. A profit and loss forecast records income and costs when they are earned or incurred. A cash flow projection records them when money actually enters or leaves your bank account.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is a cash flow projection in simple terms?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It is an estimate of the cash your business expects to receive and pay out over a future period, showing your expected bank balance at the end of each week or month.\"}},{\"@type\":\"Question\",\"name\":\"How far ahead should a cash flow projection look?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Most SMEs project 12 months ahead, with more detailed weekly forecasts for the next 13 weeks. 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A reliable cash flow projection helps UK SMEs see these pressure points before they arrive. What is a cash flow projection? A cash flow projection is an estimate of the money [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20330,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is a Cash Flow Projection and What Should It Include?<\/title>\n<meta name=\"description\" content=\"What is a cash flow projection and why does it matter? 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