Monthly Cash Flow Plan for Small Business
A simple monthly routine to keep your bank balance predictable instead of stressful.
A monthly cash flow plan is one of the most useful habits a small business can build. It takes 15–30 minutes and removes most surprises.
The concept
Estimate the cash coming in and going out for the next month, then compare it to your current bank balance to predict the end-of-month position.
Simple formula
End Balance = Starting Balance + Expected Cash In − Expected Cash Out
Why it matters
- Spots low-cash weeks before they become emergencies.
- Helps decide when to invest, hire, or wait.
- Makes tax and VAT payments far less stressful.
Practical example
A shop starts the month with €6,000. Expected sales received: €11,000. Expected outgoings: rent €1,500, suppliers €4,500, salaries €3,000, other €1,200. End balance = 6,000 + 11,000 − 10,200 = €6,800.
How to interpret
- If the end balance is too low, delay non-urgent spending.
- If it's healthy, set aside money for taxes or a buffer.
Next steps
- Do this on the same day each month.
- After 3 months, compare estimates to reality and adjust.
Open the Cash Flow calculator →
This guide is for educational and planning purposes only. It is not accounting, tax, legal, investment, or financial advice.