Why thirteen weeks
Thirteen weeks is a quarter. The horizon is short enough to be precise, week by week, and long enough to cover the major payments: salaries, main suppliers, taxes, loan repayments. Beyond that, the exercise becomes a budget forecast; below it, strain is no longer seen in time to act.
What it contains
- The opening balance. Actual cash, bank by bank, overdrafts included.
- Expected receipts. Customer by customer for the main ones, with the realistic payment date, not the contractual one.
- Committed payments. Salaries, suppliers, rent, taxes and social contributions, loan instalments, investments already decided.
- The end-of-week balance, compared with available credit lines.
How to keep it alive
The plan can be built in a day from the general ledger and the aged receivables report. Its value then comes from updating it: each week, the past forecast is replaced by actuals, a new week is added at the end of the horizon, and variances are analysed. After a month, the company knows which customers actually pay on which date, which is often worth more than the plan itself.
"A banker forgives cash strain that was flagged in advance. Rarely one they discover."
The Edmond'S JournalWhat it changes with your banks
Presenting an up-to-date 13-week plan shows that the company knows its flows and anticipates. A request for an overdraft or a cash facility backed by this document is discussed on figures, not on trust. And if a payment has to be postponed, the discussion happens before the incident, not after.
Key takeaway
The 13-week cash flow plan replaces neither the budget nor the annual accounts. It answers a single question, the one that matters most in times of strain: will we be able to pay, week after week, over the next three months?