Why a 13-week horizon works for SMEs
Annual budgets are useful for direction, but many operational cash decisions need weekly visibility. A 13-week model provides enough horizon for action while staying close to current business conditions.
It enables leadership to identify pressure points early and plan interventions before supplier or payroll commitments are affected.
Core forecast inputs to maintain
A reliable forecast starts with disciplined input ownership. Each line item should have a source owner and update frequency to avoid stale assumptions.
- Weekly expected collections by major customer group
- Committed payroll, rent and statutory payment schedules
- Planned supplier payments by priority tier
- Known one-off cash events and contingent liabilities
Forecast governance and review cadence
Run a structured weekly review where forecast versus actual results are analysed and the next 13 weeks are rolled forward. This creates operational accountability and improves forecast accuracy with each cycle.
Use decision triggers for low-cash scenarios so leadership can act quickly on cost timing, collections escalation or funding discussions.
Common implementation mistakes
The most common error is treating the forecast as a spreadsheet exercise instead of a management control process. Without ownership and weekly discipline, the model loses relevance quickly.
A second mistake is over-detail. Keep categories decision-ready and focus on material cash drivers rather than low-value line-item noise.