13 Week Cash Flow Report Definition
Define the 13 Week Cash Flow Report as a method to forecast the cash flow needs of a company. It is commonly used in businesses with complicated cash cycles. This tool is especially useful in a situation where active cash management is required. Use the 13 Week Cash Flow Model as a “big picture” tool to see how much cash is required on a forward rolling basis. Having a clear sense of your working capital needs and when you need it gives added impetus to collect cash and/or to generate revenue.
This tool is also helpful when used in conjunction with the daily cash report. It is helpful to think of the 13-Week Cash Flow report as giving you the strategic big picture needs, while the Daily Cash Flow Report provides a more tactical level measure of the firm’s cash position.
13 Week Cash Flow Report Meaning
For a 13 week cash flow report, meaning the report used to project cash flow expectations into the coming weeks, a strong understanding creates the foundation to make valuable models. There are several key areas of information that you will need to obtain, including the following:
- Beginning cash balances
- Estimated cash receipts
- Estimated payroll and taxes
- Note/lease payments
- Estimated operating expenses
- Payments on LOC-ML
- Payments on old A/P.
The CFO/Controller should prepare and update thirteen week cash flow model. The CFO/controller should be the one to setup and prepare the template. Information to populate the template will most likely reside with the persons in Accounting and HR.
Maintain and update it on a weekly basis.
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