What Net Cash Flow Means in the Forecast
A clear explanation of the Net Cash Flow column in the AskBiz Rolling Cash Forecast — how it is calculated, what green and red colours mean, and how the cumulative running balance is built from it.
Key Takeaways
- Net Cash Flow for each week equals Projected Inflow minus Projected Outflow — a simple subtraction.
- Green net figures mean that week is expected to add cash to your balance; red means it will reduce it.
- The Running Balance column accumulates each week's net figure onto your current cash balance.
The Simple Formula
Net Cash Flow for any given week in the Rolling Cash Forecast is calculated by a straightforward formula: Projected Inflow minus Projected Outflow equals Net Cash Flow. For example, if week three shows a Projected Inflow of 8,400 and a Projected Outflow of 6,900, the Net Cash Flow for that week is plus 1,500. If week four shows Projected Inflow of 6,000 and Projected Outflow of 9,200 (a payroll week), the Net Cash Flow is minus 3,200. These are the two possible outcomes: a positive net week adds cash, a negative net week drains cash.
Green and Red Colour Coding
AskBiz uses a consistent colour scheme to make Net Cash Flow easy to read at a glance. Positive figures (inflow greater than outflow) are displayed in green text, often with a small upward arrow icon. Negative figures (outflow greater than inflow) are displayed in red text, often with a small downward arrow icon. A week with exactly zero net cash flow — inflow exactly equal to outflow — displays in a neutral grey. Because forecasting involves estimates, a very small positive or negative figure should be treated as approximately neutral rather than as a firm prediction of cash gain or loss.
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Start for free →How the Running Balance Is Built
The Running Balance column is built by adding each week's Net Cash Flow to the previous week's Running Balance. It starts with your current cash balance as the opening position. Week one's Running Balance equals current balance plus week one's Net Cash Flow. Week two's Running Balance equals week one's Running Balance plus week two's Net Cash Flow. This process continues through all 12 weeks. The result is a projected cash balance at the end of each week that shows whether your cash cushion is growing, holding steady, or being depleted over the forecast horizon.
Reading the Forecast for Cash Health
Scan the Net Cash Flow column from top to bottom. A healthy pattern shows a mix of positive and negative weeks, with positive weeks outnumbering negative ones overall. A concerning pattern shows several consecutive red weeks, especially if those red weeks coincide with large outflow spikes such as payroll fortnights. The most actionable signal is when the Running Balance column begins showing declining values week over week and is projected to reach a low point within eight weeks. This gives you a specific timeline — eight weeks — in which to take action to reverse the trend.
Using Net Cash Flow to Plan Timing of Payments
Net cash flow awareness helps you time discretionary payments strategically. If the forecast shows week six will be a strongly positive week — perhaps because a large receivable is expected to be paid — and you are planning to purchase new equipment, timing that purchase for week six means the outflow lands when your cash position is strongest. Conversely, if week five is already projected as a heavy outflow week due to payroll and rent, avoid scheduling additional discretionary purchases that week. The forecast provides the visibility to make these timing judgements confidently.