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The Practical Guide to Establishing a 13-Week Cash Flow Model

16 April 2024

Dwight x Eventus 8-Step Implementation and Management Guide
Step 1: Define the Objective and Assign Accountability

Objective Clarity

Assigning Accountability

  • Who: Designate an individual, ideally someone with deep financial knowledge like a Controller, Financial Analyst, or a Fractional CFO.
  • Responsibilities: This includes regularly updating the model with accurate data, analyzing variances, communicating insights to management, and adjusting the model as needed.
  • Skills Required: The responsible party should have strong analytical skills, attention to detail, and the ability to compile and communicate complex financial information clearly.
Step 2: Gather Historical Data
Step 3: Set Up Your Model
This field is for validation purposes and should be left unchanged.

Cash Inflows

  • Accounts Receivable Collections: Forecast weekly collections based on historical collection periods and sales forecasts.
  • Cash From Customer Deposits: If your business takes customer deposits, be sure to include them in your inflow section.
  • Non-Aged Collections (eCommerce): If you have real-time sales, such as in an eCommerce or retail business, be sure to analyze trends from historical periods as well as discuss with marketing any upcoming promotions that could impact sales levels. Remember to forecast net sales (net of returns, credit card merchant fees, and discounts).
  • Other Income: Include expected income from other sources like asset sales, tax refunds, or any other cash inflows not related to main operations.

Cash Outflows

  • Operating Expenses: Break down by category (e.g., payroll, rent, utilities) and forecast based on historical spending patterns and anticipated changes.
  • Capital Expenditures: Schedule any expected purchases of long-term assets.
  • Debt Service: Include weekly interest and principal payments.
  • Other Disbursements: Any other cash payments not included above.
Step 4: Develop Assumptions
Step 5: Create the Forecast
Step 6: Weekly Review and Adjustments
Step 7: Actionable Insights and Decision Making
Step 8: Communication and Weekly Review

Sales and Revenue

  • Upcoming Promotions and Impact: “What promotions or sales initiatives are we planning in the next 13 weeks, and what impact do we expect them to have on sales volume and timing of cash receipts?”
  • New Products or Services Launch: “Are there any new products or services being launched that could affect our sales forecast? What are the expected sales from these new offerings?”
  • Significant Contracts or Deals: “Do we have any significant contracts or deals closing that should be included in our cash inflow projections? What is the probability and timing of these receipts?”

Accounts Receivable

  • Changes in Payment Terms or Customer Behavior: “Have there been any recent changes in payment terms with major customers or shifts in payment behavior we should be aware of?”
  • Outstanding Receivables Issues: “Are there any significant outstanding receivables that are at risk of not being collected on time? How should we adjust our collections forecast?”

Operating Expenses

  • Fixed and Variable Cost Adjustments: “Are there any expected changes in our fixed or variable costs? How should we adjust our cash outflow projections accordingly?”
  • Significant Upcoming Expenses: “Are there any large, one-off expenses coming up, such as annual insurance premiums or tax payments, that we need to account for?”

Capital Expenditures and Investments

  • Planned Capital Expenditures: “What capital expenditures are planned for the next 13 weeks, and what are the payment terms? Are these expenditures flexible or committed?”
  • Investment Requirements: “Do we have any investments in projects or joint ventures that require cash contributions during this period?”

Debt and Financing

  • Debt Repayments: “Are there any debt repayments due in the next 13 weeks? What are the terms, and are there any options for refinancing or deferral?”
  • Interest Payments: “What are the scheduled interest payments on our existing debt facilities?”

Inventory and Supplier Payments

  • Inventory Purchases: “Based on our sales forecast, what inventory levels do we need to maintain? What are the payment terms with our suppliers? Have they changed?”
  • Supplier Negotiations: “Have there been any negotiations with suppliers that could impact on our payment terms or timing?”


  • One-Off Payments and Deposits: “Do we need to make any one-off payments or deposits to vendors or partners? Are there any refunds or rebates we expect to receive?”
  • Contingency Plans: “What contingencies do we have in place for unexpected expenses or shortfalls in cash flow?”

Conclusion and Additional Tips

  • Accuracy is key: Ensure data accuracy and realistic assumptions to maintain the integrity of the model.
  • Flexibility: Build your model to be easily adaptable as new information comes in.
  • Simplicity: While detail is important, avoid overly complicating the model. Keep it user-friendly.
  • Consistency: Use consistent methodologies for forecasting and updating the model.

About Eventus Advisory Group

Eventus Advisory Group is a leader in on-demand finance and accounting support services. From accounting and Controllership to CFOs and SEC reporting, we provide public and private companies with a cost-effective option to manage, build-out, or augment their internal finance teams, systems and processes. Whether you need to fix, adapt or grow your business, Eventus provides an on-demand solution. Learn more at

Need expert help getting started on your 13-Week Cash Flow model? Connect with the Eventus team directly to explore their accounting and CFO services can benefit your scaling business.