Cash Flow Forecasting for Freelancers — Method & Free Tool
How to build a cash flow forecast that stays accurate: horizons, dated inflows and outflows, the mistakes that kill forecasts, and a free tool to maintain one.
Frequently asked questions
What is cash flow forecasting?
Projecting the money entering and leaving your accounts over a future period, dated item by item, to see what your balance will be on any given day.
How far ahead should I forecast?
Ninety days (13 weeks) is the default because it covers a full quarter of obligations; extend to 12 months for annual items like insurance and tax.
What is the difference between cash flow and profit?
Profit is revenue minus costs over a period. Cash flow is when the money actually moves — you can be profitable and still unable to pay rent if invoices are late.
What tools do I need?
A spreadsheet works if you maintain it, but forecasts go stale. A calendar-based app keeps recurring items projecting forward automatically.
How accurate can a personal forecast be?
Fixed costs and contracted income are near-exact; variable spending should use a conservative running average and be treated as a range.