An invented 13-week cash flow forecast for a therapy office, five ways to improve cash flow, six steps to build a forecast, and posts on funding for single trades. Partners review each request and decide.
A 13-Week Cash Flow Forecast for a Franklin County, PA Therapy Office, Laid Out Week by Week
Illustration only, invented figures: a Franklin County, PA physical therapy office opens the quarter with an $18,000 bank balance. In this invented case it pays staff every other week, pays rent in weeks 1, 5, 9 and 13, and has a yearly equipment service contract of $6,400 due in week 9. A 13-week cash flow forecast lays each of those dates against the deposits the office expects.
| Week | Cash in | Payroll | Rent and contracts | Supplies and other | Closing balance |
|---|---|---|---|---|---|
| Week 1 | $11,200 | - | $5,800 | $900 | $22,500 |
| Week 2 | $10,400 | $15,800 | - | $1,100 | $16,000 |
| Week 3 | $9,800 | - | - | $800 | $25,000 |
| Week 4 | $11,900 | $15,800 | - | $1,200 | $19,900 |
| Week 5 | $10,600 | - | $5,800 | $950 | $23,750 |
| Week 6 | $10,100 | $15,800 | - | $1,000 | $17,050 |
| Week 7 | $12,300 | - | - | $850 | $28,500 |
| Week 8 | $11,000 | $15,800 | - | $1,150 | $22,550 |
| Week 9 | $9,600 | - | $12,200 | $900 | $19,050 |
| Week 10 | $10,900 | $15,800 | - | $1,050 | $13,100 |
| Week 11 | $11,500 | - | - | $1,000 | $23,600 |
| Week 12 | $10,200 | $15,800 | - | $900 | $17,100 |
| Week 13 | $12,100 | - | $5,800 | $1,100 | $22,300 |
The smallest closing balance in this invented forecast is $13,100, in week 10: a payday that comes straight after week 9, when rent and the service contract land together. Nothing in the table runs below zero, but the low week shows how much room the office has, and when. A business whose forecast does dip below zero can take the size and date of the dip to the line of credit page and to a call about a line of credit.
How Can a Business Improve Cash Flow? Five Levers a Chambersburg, PA Therapy Office Can Test
A forecast like the one above is also where to test changes before making them. Five levers an office like that can try in its own sheet:
- Collect at the visit: take copays and patient balances at the front desk instead of billing them later.
- Spread a yearly bill: pay a service contract or a premium in installments where the vendor offers that.
- Set money aside each week toward the next large bill, so its week stops being the low point.
- Move a purchase date: buy a planned piece of equipment after a strong week rather than right before rent.
- Keep a line of credit open for the low week and pay it down when deposits catch up.
The first four need no funding at all. The fifth is where Coralport Finance comes in: a line of credit request goes to a funding partner, which sets the limit and the terms, or declines.
How to Prepare a Cash Flow Forecast for a Franklin County, PA Business in Six Steps
- Open the sheet with the cash in the bank on the Monday the forecast starts.
- List cash in by week: deposits expected from invoices already sent and from the same weeks last year.
- Put fixed costs on their real dates: payroll on its paydays, rent on its due date, loan and lease payments on theirs.
- Add the costs that vary, such as supplies, utilities and repairs, from a recent weekly average.
- Add the one-off bills already known: a yearly premium, a license renewal, a service contract.
- Close each week, carry the balance forward, and each Monday drop the oldest week and add a new one.
With a biweekly payroll, a 13-week window holds 6 or 7 paydays, depending on where the first one falls, so check the count against the real calendar before trusting the low week.
Trade Posts on This Blog: Repair Shops, Salons, Landscapers, Daycares and Hotels in Chambersburg, PA
Posts on single trades sit beside the forecasting pieces: where a shop can finance one machine, from the dealer's form to a funding partner; repair shop costs such as a loaner car and fleet parts; salon loan options for color processors and stylist education; mower loans for slope and out-front mowers and an engine rebuild; child care funding for kitchen refrigeration and indoor play equipment; and hotel costs outside the mortgage, from a utility cart to a booking website. Each post names the product pages it relies on, and every figure in it is either from a named Census program or labeled as invented.
By Coralport Finance · Updated
