The 13-week cash flow: the most useful spreadsheet your company doesn't have
The balance sheet tells you where you have been. A 13-week cash flow plan tells you whether you can pay salaries in November.
Companies rarely fail because of a loss. They fail because they run out of cash. That is why banks, investors and restructuring teams all use the 13-week cash flow plan.
Why 13 weeks
Thirteen weeks is one quarter. It is far enough ahead to see a problem in time and close enough for the numbers to be reliable. The plan runs week by week, not month by month, because salaries, VAT and big suppliers are never paid "on average".
What goes into the plan
- Opening balance of every bank account.
- Inflows: customer collections based on how customers actually pay, not on due dates.
- Outflows: salaries, taxes and contributions, VAT, suppliers, rent, loans and leasing.
- Closing balance per week and the minimum level you must never drop below.
The rhythm that makes it useful
The plan only works if it stays alive. Every week, compare plan and reality, explain the difference and roll the plan one week forward. After a month you will know which customers are truly reliable, and after a quarter you will have a spreadsheet your bank trusts.
When it's urgent
If your balance will fall below one month of costs within a month or two, don't wait. A problem spotted early always has more solutions: delayed payments, earlier collections, short-term financing or cost cuts.
You can do a quick estimate in our runway calculator.