Cash Flow Forecasting

Overview

Cash flow forecasting predicts when money actually enters and leaves your bank account — not when revenue is recognized. For ecommerce businesses, cash and revenue timing diverge significantly: payment processors hold funds for days or weeks, inventory must be purchased and paid for weeks before it sells, and marketplace disbursements are bi-weekly or delayed by account reviews.

This skill guides you through building a 13-week rolling cash flow forecast using your platform's data, covering the key cash timing differences by sales channel, and setting up a simple model in a spreadsheet or BI tool that you update weekly.

When to Use This Skill

• When managing cash position and needing to know your runway
• When planning inventory buys and needing to confirm you have the cash to fund them
• When preparing for a fundraise and needing to show investors a 12–18 month cash model
• When stress-testing the business against a revenue shortfall scenario
• When selling on Amazon and managing bi-weekly disbursement timing
• When planning for seasonal cash flow gaps (Q1 trough after Q4 peak)

Core Instructions