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Cashflow forecasting is an integral exercise for thousands of British businesses.
Last updated: 11 February 2026
Cashflow forecasts give businesses an accurate overview of the risks to their budget and gross profits. This in turn means they can maintain a stable level of cash on hand, leaving UK companies that forecast cashflow better placed to deal with shocks. Being able to project those levels aids in decision-making and supports long-term resilience.
Table of contents
- What is a cashflow forecast?
- What are the drawbacks of a cashflow forecast?
- How do I create a cashflow forecast?
- How can Smart Currency help?
- Frequently asked questions
What is a cashflow forecast?
A cashflow forecast is a piece of analysis that aims to predict upcoming payments and receipts as well as their impact on corporate finances. Forecasts can be as simple as a chart on an Excel sheet, but the best ones contain detailed scenario modelling created with the help of specialised software.
For businesses with international exposures, forecasting cashflow have the added complication of representing payments in multiple currencies. A manufacturer that pays suppliers in USD, for example, would be highly sensitive to the cashflow implications of dollar volatility. A business selling travel packages to the continent would be equally sensitive to euro movement.
Have a watch of recent webinar hosted by Smart Currency CEO, Charles Purdy. In the session, we explore the vital significance that cashflow plays in growth and strategy, as well as diving into real-world examples of how boosting cashflow has transformed businesses in the travel sector.
Watch: Smart Currency CEO Charles Purdy discusses cashflow strategy.
What are the drawbacks of a cashflow forecast?
While they are always a good idea, cashflow forecasts are not always reliable as they can never take every scenario into account. ‘Black swan’ events like the Brexit referendum and Donald Trump’s tariff regime led to sweeping, sudden shifts in the relative value of key currencies,
Some businesses treat cashflow forecasts as rigid documents, when really they should be tweaked and updated as the landscape shifts.
How do I create a cashflow forecast?
The first step to creating a cashflow forecast is to take stock of all your upcoming incomings and outgoings. Even if you don’t know the final value of a contract, note down the possible range and record this somewhere safe.
Most businesses will rely on outdated and clunky software like Excel to keep track of this. But that increases the risk of manual error as finance teams move between sheets, tabs and payments. Maintaining version integrity is tricky, and often risk becomes concentrated among one or two key members of the team. If they go on holiday, or leave the business entirely, it is immensely difficult to pick up where they left off.
That’s why UK companies now prefer to use bespoke treasury management tools like SmartHedge PRO. With our solution, you only need to upload payments once. They are then stored in your account and used to create intuitive models that can be tweaked or adjusted at the click of a button.
How can Smart Currency help?
Alongside our proprietary technology, Smart Currency Business leverages more than 20 years of treasury experience to reduce the risks to your cashflow.
Our expert team provide risk management support from start to finish and are available to assist you on an ongoing basis – something you won’t find at banks or traditional brokerages.
Sign up with Smart Currency today to see how we can help protect (and perhaps even enhance) your cashflow.
Frequently asked questions
What are the benefits of a cashflow forecast?
A cashflow forecast makes your business more resilient to sudden changes in your budget. It can also help you make strategic decisions that promote operational strength and financial security.
How can forecasting cashflow help my business?
Accurately forecasting cashflow means you have a better chance of knowing where your key financials stand at year-end. This creates buy-in at the executive level and can aid with expansion, even at times of market stress.
What tools are available to help with cashflow forecasting?
Treasury management solutions such as SmartHedge PRO provide advanced cashflow forecasting in a simple and easy-to-digest format.
