Your profit and loss statement tells you how last month went. A 13-week cash forecast tells you whether you can make payroll in February. Owners need both.

What goes in it

Start with today’s bank balance. Add expected customer payments by week. Subtract payroll, rent, loan payments, tax estimates and any large purchases. The bottom line is your projected balance each week.

How to keep it honest

Every Monday, replace last week’s forecast with what actually happened and roll the window forward one week. After a month, you will see where your guesses run optimistic.

When to act

If any week dips below one month of fixed costs, you have time to move a payment, chase an invoice or draw on a credit line before it becomes urgent.