Cash flow forecasting2026-10-13T21:56:31-04:00

Cash Flow Forecasting that Does the Math for You

Cash is king, and spreadsheets rarely get it right. PlanGuru calculates your cash balance for you, so every change you make to your income statement or balance sheet flows straight through to your cash forecast and cash flow statement.

Stop Forcing Your Spreadsheet to Tie Out

Building a budget that accounts for every factor affecting cash is one of the hardest parts of financial planning. PlanGuru handles the cash math so you can focus on the decisions behind it.

No Cash Projections to Build

Your cash line is created for you in every new scenario and calculated automatically. There’s no formula to write and nothing to reconcile.

Timing That Matches Reality

Link revenue and expenses to receivables and payables with real payment terms, so cash moves when money actually changes hands.

A Cash Flow Statement, Built for You

PlanGuru generates a full cash flow statement from your income statement and balance sheet, covering operating, investing, and financing activity.

PlanGuru Solves for Cash So You Don’t Have To

Open a blank scenario and your Cash & Cash Equivalents line is already there. It works differently from every other account: PlanGuru manages it for you, based on everything else in your model.

  • Ready from day one. The cash line is pre-created on the balance sheet in every new scenario.
  • Fully automated. No projection method to choose. PlanGuru calculates cash from your balance sheet activity and income statement results.
  • Always in balance. Every change keeps your balance sheet balanced and your cash flow statement accurate.
  • Still yours. Rename the line’s description to match your chart of accounts.
PlanGuru Cash Flow Trends report with bank accounts vs budget, working capital, and net cash charts, alongside the forecast balance sheet with the automatically calculated Cash and Cash Equivalents line

Follow the Cash: A Quick Example

Start with a simple model holding $50,000 in cash. Click through each step to see how PlanGuru updates cash as you build.

You add: a $30,000 equipment purchase in March.
Cash goes to: $20,000.

With no other instructions, PlanGuru assumes you paid cash and reduces your balance by the full purchase price.

Balance sheet showing cash dropping from $50,000 to $20,000 after a $30,000 equipment purchase in March
You add: a $30,000 loan in March under long term liabilities.
Cash goes to: $50,000.

The loan offsets the purchase, so your cash returns to where it started. Need the full payment schedule? The Notes Payable method calculates amortization from your loan terms.

Balance sheet showing cash returning to $50,000 after a $30,000 loan finances the equipment purchase
You add: $11,000 in January revenue and $1,000 in cost of sales.
Cash goes up by: $10,000, equal to net income.

That’s exactly right if every sale is collected in cash on the spot.

Income statement and balance sheet showing $10,000 of net income increasing cash to $60,000 in January
You add: an accounts receivable account linked to sales with 30 day terms.
Cash in January: down $1,000. Cash in February: up $11,000.

Sales now land in receivables first, while cost of sales is still paid in cash. When the 30 days pass, the collection shows up in cash.

Income statement and balance sheet showing sales moving into accounts receivable, with cash dipping to $49,000 in January and rising to $60,000 in February
PlanGuru cash flow statement showing how changes in payables, inventory, receivables, and other balance sheet accounts flow to cash each month

Every Balance Sheet Change Flows to Cash

PlanGuru follows the same rules your accountant does, automatically.

  • Assets go up, cash goes down, unless the change is offset by a decrease in another asset or an increase in a liability.
  • Liabilities go up, cash goes up, unless the change is offset by a decrease in another liability or an increase in a non-cash asset.
When You… Cash…
Add a fixed asset Decreases
Finance an asset with a loan Stays the same
Increase accounts payable Increases
Reduce accounts receivable Increases

Cash Timing That Matches How You Get Paid

Net income isn’t the same as cash in the bank. PlanGuru posts net income to cash, less any accruals or deferrals you capture by linking income statement accounts to the balance sheet.

  • Sell on account. Link sales to accounts receivable with the Average Days to Collect method, and cash arrives on your real collection terms.
  • Pay on terms. Accrue or defer expenses so cash goes out when bills are actually paid.
  • See the gap. Spot months where you’re profitable on paper but tight on cash, before they arrive.
PlanGuru accounts receivable set to Average Days to Collect, linked to delivery sales, with the resulting cash and receivables on the forecast balance sheet

A Complete Cash Flow Statement, Built Automatically

Every model you build, from a startup budget to a multi-entity forecast, comes with a cash flow statement that shows exactly how your decisions affect liquidity.
Hover over each section to see what it captures.

Operating Activities

Income and working capital

Day to Day Cash

Net income plus changes in working capital, accruals, and other income items, like receivables collected and payables paid.

Investing Activities

Equipment and property

Long Term Assets

Fixed asset purchases and disposals, so you can see the cash impact of every capital investment you plan.

Financing Activities

Loans and equity

Funding Your Plan

Loan proceeds, repayments, and equity injections, showing how financing decisions change your cash runway.

See It in Action

Watch how PlanGuru updates cash as you add assets, loans, revenue, and receivables.

Frequently Asked Questions

Cash Flow Forecasting FAQs

Do I need to project my cash balance?2026-10-12T18:11:25-04:00

No. PlanGuru calculates the Cash & Cash Equivalents line automatically from the rest of your model, so it has no projection method to set. You can still rename the line’s description.

Why did my cash drop when I added an asset?2026-10-12T18:11:50-04:00

Unless you tell PlanGuru otherwise, it assumes new assets are paid for in cash. If you financed the purchase, add the loan or other liability for the same amount and cash will return to its original balance.

How do I forecast sales customers pay for later?2026-10-12T18:12:09-04:00

Add an accounts receivable account and link it to your sales line with the Average Days to Collect method. Sales then land in receivables first and move into cash based on the collection terms you set, such as 30 days.

Can PlanGuru model loan payments and amortization?2026-10-12T18:12:25-04:00

Yes. The Notes Payable projection method lets you enter your loan terms and calculates an amortization schedule, so principal and interest flow through to cash and your financial statements.

Does PlanGuru build a cash flow statement?2026-10-12T18:12:45-04:00

Yes. PlanGuru automatically generates a cash flow statement from your income statement and balance sheet, organized into operating, investing, and financing activities. Its cash at end of period line feeds the cash balance on your balance sheet.

Where can I learn more?2026-10-12T18:14:00-04:00

Read the Cash and Cash Equivalents article in the Help Center.

Know Your Cash Position Before It Happens

Let PlanGuru handle the cash math while you plan for what’s next. Start a free trial or join a live demo to see cash flow forecasting in action.

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