Business Cash Flow Forecast Calculator — Australia 2026-27
Forecast your cash position for the months ahead.
Forecast Australian business cash flow with AUD sales, GST timing, wages, super, rent, loan repayments, tax set-asides, and monthly runway.
Australia Cash-Flow Forecast Notes
Australian cash-flow forecasts should allow for GST collected, BAS payment timing, payroll, superannuation, stock purchases, rent, insurance, and tax set-asides.
Use this version to stress-test seasonal sales, slow debtors, supplier bills, and whether the business has enough runway before the next BAS or payroll cycle.
Australian version note: this business cash flow forecast keeps the calculation anchored to AUD amounts, local product names, Australian tax language, and the way banks, employers, agencies, or advisers usually describe the inputs.
Local cues stay visible where they matter: ATO, PAYG, superannuation, Medicare levy, stamp duty, kilometres, comparison rate, APRA, Centrelink, GST, and Australian-dollar results are not rewritten into overseas vocabulary.
Use the output as an Australian estimate first, then sanity-check it against local quotes, lender criteria, government thresholds, state rules, or professional advice before relying on the number.
Simple monthly model. Does not include payment timing delays, seasonal patterns, or one-off items. Use Advanced workings for full monthly schedule.
Select the question that matches where you are right now.
Your result shows the projected cash balance at each milestone. The key number is not just the final balance — it is the lowest point reached along the way. Even if Month 12 looks healthy, a dip below zero in Month 4 could mean insolvency before you get there.
The first quarter is the highest-risk period. Revenue growth has not yet compounded, while fixed costs are constant. If Month 3 balance is below one month of expenses, you have a thin buffer — consider a credit facility or accelerate collections.
Higher revenue growth can actually worsen short-term cash flow if it requires upfront investment (stock, staff, marketing). The 2%/month default in this calculator assumes revenue arrives without working capital investment. For product businesses, reduce the effective growth rate to account for stock cash tied up.
Runway applies when burning cash (expenses exceed revenue). For profitable businesses, focus instead on "buffer" — how many months of expenses you could cover from current cash if revenue suddenly stopped. 3 months minimum; 6 months is comfortable for Australian business conditions.
If the forecast shows a negative balance at any point, action is needed before that month arrives — not after.
Banks lend money to businesses that do not need it and refuse it to businesses that do. Approach your bank now for a business overdraft or line of credit. Typical cost: 10–15% p.a. A $30,000 credit line costs only $3–4.50/day to hold unused and can prevent insolvency.
Every day faster you collect invoices improves your cash position. For a $50,000/month revenue business, reducing average payment terms from 45 days to 30 days unlocks $25,000 in cash permanently. Chase overdue invoices immediately — the longer they age, the less likely they are to be paid.
If a tax bill is contributing to the cash crunch, contact the ATO proactively. The ATO offers interest-free and low-interest payment arrangements for businesses experiencing genuine cash flow difficulties. It is far better to arrange a payment plan before the debt becomes overdue than to receive a Director Penalty Notice. Call the ATO Business line (13 28 66) or speak to your accountant.
The three levers that most directly improve cash flow are collections speed, payment timing, and expense timing.
Invoice immediately on completion. Offer 1–2% early payment discount. Use direct debit or card on file. Use invoice financing (advance 80–90% of invoice on day of issue). Track Days Sales Outstanding monthly — it is the single most important cash flow KPI for most businesses.
Negotiate 30-day payment terms with key suppliers. Pay on the due date, not before. Use a business card with 55-day interest-free period for regular supplier payments — then pay the card on the due date. This creates a cost-free 30–55 day float on those expenses.
Transfer 25–30% of each net profit to a dedicated tax account monthly. Also set aside 10% of GST-inclusive revenue for your BAS. These are obligations, not cash — treating them as available working capital is a common and dangerous mistake that creates cash crises at tax time.
Once you have your forecast, these are the practical next steps.
A 13-week (3-month) weekly cash flow forecast is the gold standard for business cash management. It tracks actual cash in and out weekly, helping you spot problems 6–8 weeks ahead. Your accountant can help build this in a spreadsheet using your actual accounts receivable and payable aging reports.
Xero, MYOB, and QuickBooks all include cash flow forecasting tools that pull directly from your actual invoices, bills, and bank feeds. These are more accurate than a simple projection because they include the actual timing of known future transactions.
Update your forecast at the start of each month with actuals versus predictions. If you are consistently over or under your forecast, adjust your assumptions. A cash flow forecast that is never updated is not useful — it is a monthly discipline, not a one-off exercise.
The cash flow forecast method, key terms, and how to read your results
What this calculator projects
This calculator builds a month-by-month cash balance projection: starting with your opening cash, adding net cash flow each month (revenue minus expenses), with optional monthly revenue growth applied. It shows you your balance at months 3, 6, and 12, the lowest point reached, and flags if the balance ever goes negative.
Key terms
| Term | Definition |
|---|---|
| Net cash flow | Revenue received − expenses paid in that month |
| Opening balance | Cash in bank at the start of the forecast period |
| Closing balance | Opening balance + cumulative net cash flow |
| Runway | Months until cash runs out (if burning cash) |
| Cash burn rate | Monthly expenses minus revenue (if negative) |
| Working capital | Current assets minus current liabilities |
This is a simplified model
This calculator uses a straight-line monthly model with optional growth. Real cash flow forecasts should also include: timing differences between invoicing and payment (debtors/creditors), seasonal patterns, one-off expenses, capital purchases, loan repayments, and tax payments. Use the Advanced workings tab to see the full monthly schedule.
The difference between profit and cash flow — and why it matters for Australian businesses
The profit/cash gap
Profit is recognised when a sale is made (accrual accounting). Cash arrives when the customer pays. For Australian businesses with 30–60 day payment terms, a business billing $100,000/month may not receive cash for 1–2 months after the work is done. Meanwhile, wages, rent, and suppliers demand payment within 7–14 days.
The growth trap
Rapid growth can destroy cash flow. Each month you sell more, you need more stock, more staff, and more working capital — but cash from those sales arrives weeks later. Many profitable, growing Australian businesses have collapsed because they could not fund the gap between paying for growth and receiving payment for it.
Common causes of cash flow problems in Australian SMEs
- Slow-paying customers (30–90 day terms)
- Seasonal revenue with year-round fixed costs
- Large unexpected expenses (equipment failure, legal)
- GST obligations — collecting GST in one quarter, remitting in the next
- ATO tax bills (income tax, PAYG) arriving in lump sums
- Rapid growth requiring upfront stock and staffing investment
The solution: cash flow forecasting
A 12-month rolling cash flow forecast lets you see problems 3–6 months before they occur — giving you time to arrange a credit line, chase debtors, defer non-essential spending, or accelerate collections.
Practical strategies to improve business cash flow — debtor management, financing, and timing
Speed up collections
The most powerful lever. Reduce your average debtor days (DSO — Days Sales Outstanding). Strategies: invoice immediately on completion (not end of month); offer 1–2% early payment discount for payment within 7 days; use direct debit or card payment instead of bank transfer; follow up overdue invoices within 24 hours of due date; use invoice financing to receive 80–90% of invoice value the same day.
Slow down payments (where appropriate)
Negotiate extended payment terms with suppliers — 30 days instead of 7 days gives you 3 extra weeks of float. Pay on the due date, not before. Use a business credit card with 55-day interest-free period for regular supplier payments.
Invoice financing and debtor factoring
Invoice finance lenders (such as ScotPac, Moula, Debtor Finance Australia) advance 80–90% of the invoice value on the day of issue. The fee is typically 1–3% of invoice value per month. For businesses with long debtor terms or seasonal patterns, this can dramatically smooth cash flow.
Business credit line
Arrange a business overdraft or revolving credit facility before you need it — banks are reluctant to lend when you are in difficulty. A $50,000 line of credit at 10–15% p.a. costs only $5–7.50/day to hold unused and can be a business lifesaver when needed.
How GST, PAYG, and income tax affect your cash flow forecast
GST timing impact
If you are on quarterly BAS lodgement, you collect GST from customers monthly but remit it quarterly. This means for 3 months you hold money that is not yours — it must be available when the BAS is due. Many businesses accidentally spend their GST obligations. Set aside 10% of your GST-inclusive revenue each month into a separate account.
PAYG withholding
If you have employees, you withhold tax from wages and remit it to the ATO either monthly or quarterly. This is effectively a 0% interest loan from the ATO — manage it carefully. Lodgement frequency depends on your withholding amount: large withholders (>$1 million/year) remit monthly; medium (>$25,000/year) remit monthly; small remit quarterly.
Income tax provisioning
Company tax (25% for small businesses with turnover under $50M; 30% otherwise) and personal income tax for sole traders and partnerships must be provisioned monthly even though it is paid annually or via PAYG instalments. A common rule of thumb: set aside 25–30% of net profit monthly into a separate tax reserve account.
PAYG instalments
The ATO estimates your expected income tax liability and requires quarterly PAYG instalments. If business performance changes significantly from the prior year, you can vary your instalments to avoid over/underpayment. Cash flow forecasting should include PAYG instalments as an expense in the relevant quarters.
❓ Frequently asked Frequently asked questions
Why is cash flow more important than profit for Australian businesses?
A profitable business can fail if it runs out of cash. Profit is an accounting concept — it is recognised when a sale is made. Cash arrives when the customer pays, which can be 30–90 days later. Meanwhile, wages, rent, and suppliers must be paid weekly or monthly. Cash flow forecasting prevents situations where a profitable business cannot make payroll.
What is a healthy cash reserve for an Australian business?
Financial advisers generally recommend 3–6 months of operating expenses as a cash reserve. For a business spending $35,000/month, that is $105,000–$210,000. If you cannot hold that much, a pre-arranged line of credit provides a safety net. Also consider that GST and tax obligations require set-asides — these are not discretionary cash.
How do I calculate business runway?
Runway = Current cash balance ÷ Monthly burn rate. Burn rate = monthly expenses minus monthly revenue (if spending more than you earn). A business with $50,000 cash burning $5,000/month has 10 months runway. If revenue equals or exceeds expenses, runway is infinite. For startups or declining businesses, monitoring runway is critical — you need to take action while you still have months remaining, not weeks.
How should I handle GST in my cash flow forecast?
Use GST-exclusive figures for revenue and expenses in your cash flow model — GST is a flow-through item. However, add your quarterly BAS payment as a separate cash outflow in the relevant month (the month your BAS is due). The easiest way to manage GST cash flow is to transfer 10% of every GST-inclusive customer payment into a dedicated BAS account on the day it arrives.
Where these figures come from
Business figures on this page are drawn from the Australian Taxation Office (business tax, GST, PAYG), Business.gov.au (the federal business registration hub), Fair Work (employer obligations), and ASIC (company and director rules).
- Company tax rate (25% / 30%) — ATO — Company tax rates.
- GST rules (10%) — ATO — GST.
- PAYG withholding & employer obligations — ATO — PAYG withholding.
- Business registration (ABN/ACN) — Business.gov.au.
- Employer pay & award obligations — Fair Work Ombudsman.
- Company & director rules — ASIC — Companies.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.