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Cash flow clarity

How to Create a Simple Cash Flow Forecast (Even If You’re Not an Accountant)

Planning Ahead Doesn’t Have to Be Complicated

Cash flow is the fuel that keeps your business running. But how do you plan for what’s ahead when you’re juggling a dozen priorities and you’re not a finance expert?

At SG&CO, we’ve helped countless South African SMEs take control of their finances with simple, no-fuss forecasting.

Here’s how you can build a cash flow forecast that works—without needing an accountant (though we’re here if you’d like one).

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1

Start With Your Opening Balance

This is how much cash you have right now in your business bank account. It’s your starting point for the month ahead.

Example: You start August with R50,000 in your account.

2

List Expected Income

Write down all the money you expect to receive in the month ahead—client payments, sales, contracts, etc. Be realistic based on your invoicing and payment cycles.

Expected income:

  • Client A: R15,000
  • Client B: R8,000
  • Retail sales: R10,000
    Total: R33,000
3

List Your Fixed and Variable Expenses

Now write down all expected costs—rent, salaries, subscriptions, stock, marketing, etc.

Outgoing costs:

  • Salaries: R25,000
  • Rent: R10,000
  • Stock: R5,000
  • Marketing: R2,000
    Total: R42,000
4

Do the Maths

Now calculate:

Opening balance + income – expenses = Closing balance

R50,000 + R33,000 – R42,000 = R41,000 left at month-end

If the number is negative, you’ll need to take action (e.g., collect payments faster, reduce spending, or plan for a shortfall).

5

Look Ahead 2–3 Months

Do the same for the next couple of months. You don’t need perfect numbers—just estimates. The goal is to spot potential shortfalls early.

Forecasting isn’t about guessing—it’s about staying prepared. Knowing when cash will be tight gives you options: speed up collections, delay spending, or speak to your accountant for help.

At SG&CO, we help SME owners go from reactive to proactive with their cash flow. If you’re ready to make better financial decisions, we’re here to help.

Get in touch with SG&CO today.

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