Cash flow management

Essentials › Accounting › Cash flow management

Finance operationsUnited Kingdom

The problem it solves

Profit and cash are not the same thing. A business can be profitable on paper and still struggle to pay suppliers, staff or tax because money arrives later than it leaves. Without a forecast, owners rely on today’s bank balance, which says nothing about next month.

What it covers

  • A 13-week rolling cash forecast built from your actual data
  • A longer monthly view linked to the budget
  • Scheduling VAT, PAYE and Corporation Tax payments
  • Modelling the cash impact of hires, purchases or price changes
  • Finding the low point and the options to cover it
  • Improving working capital through terms, stock and billing

Who it is for

Businesses with seasonal or uneven income, fast growth, thin margins or upcoming investment decisions.

Good to know in the UK

  • A 13-week forecast is widely used because it is short enough to stay accurate week by week and long enough to see a problem coming.
  • Tax payments are among the largest and least flexible outgoings, so they belong in the forecast from the start.
  • If cash runs short, HMRC may agree a Time to Pay arrangement, but planning ahead is better than asking late.

Questions to ask a provider

  • How often will the forecast be updated?
  • Is it built from our live accounting data?
  • Will you compare forecast with actual each week?
  • Can you model what-if scenarios?

This is a plain-English summary for United Kingdom businesses. It is general information, not financial, tax or legal advice, and rules change: facts last checked 8 November 2026. Speak to a qualified adviser about your own situation.