A Rolling Business and Cash Flow forecast is an ongoing blueprint that numerically and financially describes the business model that you have and what that business model will look like in the future, all supported by a solid set of assumptions.

The word Rolling is important because we just don’t prepare a forecast and throw it in the drawer. We use it as an ongoing blueprint. When the actual results for a month or a quarter are realized we plug the actual results into the forecast and let it roll forward throughout the remainder of the forecast and see what changes.

A professional Forecast has 3 components. If any one of these components are missing then it is not a professionally done forecast and is incomplete and unacceptable. Those 3 components that must be a part of any professional forecast is the Forecasted P&L, A Forecasted Balance Sheet and a Forecasted Cash flow.

This blueprint helps the business owner prepare for anything that might be coming and is therefore one of his/her’s most important tools.