A forecast method first, then an invented 13-week table, then cash flow fixes, then the article list. Worked figures are invented and labeled.
How to prepare a cash flow forecast for a Searcy, AR building supply store
Preparing a cash flow forecast means listing money in and money out by the week it actually moves, not by the week it is earned or billed. For a supply store in Searcy, AR that difference is large, because a contractor who picks up lumber today may pay at the end of the month while the supplier wants its money on a fixed date.
- Start from the cash in the bank today.
- Enter counter sales by the week the card or cash deposit lands.
- Enter contractor payments by the week each account usually pays, from the aging report rather than the invoice date.
- Enter fixed outflows on their dates: payroll, rent, loan and lease payments.
- Enter supplier orders on the date payment is due under the terms, not the delivery date.
- Run the balance week by week and mark the week with the smallest balance.
Building a 13-week cash flow forecast at a White County, AR building supply store
Illustration only, invented figures: a store opens with $31,000 in the bank. It pays $14,600 of payroll every other week, a supplier bill of $61,000 in weeks 3, 7 and 11, rent of $4,200 every four weeks and about $6,900 a week in other costs.
| Week | Cash in | Cash out | Ending cash |
|---|---|---|---|
| Week 1 | $27,700 | $11,100 | $47,600 |
| Week 2 | $32,200 | $21,500 | $58,300 |
| Week 3 | $27,700 | $67,900 | $18,100 |
| Week 4 | $30,900 | $21,500 | $27,500 |
| Week 5 | $24,900 | $11,100 | $41,300 |
| Week 6 | $32,500 | $21,500 | $52,300 |
| Week 7 | $27,700 | $67,900 | $12,100 |
| Week 8 | $31,400 | $21,500 | $22,000 |
| Week 9 | $22,800 | $11,100 | $33,700 |
| Week 10 | $32,400 | $21,500 | $44,600 |
| Week 11 | $28,100 | $67,900 | $4,800 |
| Week 12 | $30,000 | $21,500 | $13,300 |
| Week 13 | $28,300 | $11,100 | $30,500 |
The balance ends the quarter at $30,500, $500 less than it started, yet weeks 7, 11 and 12 sit under the $15,000 cushion the owner wants to keep, and week 11 drops to $4,800, $10,200 short of it. The third supplier bill lands before the cash from the second has been rebuilt. Seeing it 13 weeks ahead leaves time to move the order date, ask the supplier for longer terms or line up a credit line before the week arrives.
How a White County, AR building supply store can improve cash flow
Improving cash flow at a supply store mostly means shortening the time between paying for stock and collecting for it:
- Ask for a deposit on special orders, such as windows, doors or custom millwork, before placing them.
- Set contractor account terms in writing and follow up on balances past 30 days every week.
- Ask main suppliers for longer terms or a split payment on large orders.
- Reorder slow-moving lines in smaller lots, so less cash sits on the shelves.
- Lease or finance a forklift or a delivery trailer instead of paying cash for it.
When the gap is timing rather than a shortfall, a business line of credit drawn for the low weeks and paid down as accounts pay fits the pattern; a large stock buy can sit under inventory financing instead.
Articles for Searcy, AR repair shops, retailers and clinics on equipment or short-term funding
Six Greenford articles cover the funding questions behind those cash flow decisions:
- Lifts and Parts Stock for Searcy, AR Repair Shops
- Funding Options for Searcy, AR Retailers
- Where Searcy, AR Owners Find Equipment Financing
- Leasing vs Financing Equipment in Searcy, AR
- Short-Term Business Funding in Searcy, AR
- How Searcy, AR Owners Compare Loan Offers
They take the trades that come up across this site, from repair bays to store aisles, and the choices that cut across them, such as leasing against financing and how to compare two loan offers line by line.
By Greenford Advances · Updated
