Journal · 2026-03-12
How CFOs Should Read a 13-Week Cash Forecast
A practical way to stress the assumptions that usually hide inside weekly collection and disbursement lines.
A 13-week cash forecast is only as honest as the conversion rates behind each line. CFOs who skim the total ending cash without interrogating collections timing often discover the miss after the week has already closed.
Start with the prior four weeks of actuals. Compare forecasted collections to what cleared the bank, not to invoices issued. If the model assumes a flat days-sales-outstanding figure while large accounts pay on irregular cycles, the weekly cash line will look smooth and still fail.
Next, separate discretionary disbursements from contractual ones. Rent, payroll, tax remittances, and debt service belong in a hard block. Marketing spend and inventory top-ups belong in a flexible block that leadership can cut when runway tightens. Mixing the two hides the true floor of cash required to keep the doors open.
Finally, ask who owns each assumption. A forecast without named owners for collections, inventory buys, and capital projects becomes a hope statement. During a cash-flow audit engagement, we mark every material assumption with a source and a last-verified date so the CFO can defend the number in a board room.
If your next board pack still shows a single ending-cash chart without a bridge from last quarter’s forecast, treat that as a preparation gap — not a formatting preference.