Hiring guide
13-week cash flow forecast: what to ask a fractional CFO to deliver
By CFO Index · Published
A 13-week cash flow forecast shows when cash is expected to enter and leave the business, week by week. When hiring a fractional CFO for this work, ask for a forecast you can update, an explanation of the main risks and a clear weekly decision process.
What should the forecast contain?
Start with the opening bank balance, expected receipts, planned payments and closing balance for each week. Keep customer collections separate from sales booked in the accounts. Include payroll, suppliers, taxes, debt repayments and committed capital purchases. BDC describes a rolling 13-week forecast as a practical short-term cash planning tool. The hiring decision is about who can turn your records into a reliable operating process, not simply produce a spreadsheet.
What information should you prepare?
Give the CFO bank balances, unpaid customer invoices, supplier bills, payroll dates and known commitments. Identify who can confirm expected collection dates. Flag disputed invoices and expenses that are approved but not yet billed. For businesses operating across Europe or the US, explain which currencies and legal entities hold the cash. A consolidated total can hide a shortage in the account that actually pays salaries. Ask the provider to document where each input comes from and who owns it.
An example of a useful decision
Hypothetical example: a business starts a week with €90,000, expects €40,000 in collections and plans €110,000 in payments. Its forecast closing balance is €20,000. If €25,000 of customer receipts move to the following week, that closing balance becomes minus €5,000. The useful CFO output is a discussion of that timing risk before the payment date. Possible actions to evaluate include confirming customer payment dates or discussing supplier terms. Any financing option needs its own cost and suitability assessment.
How should the weekly update work?
Agree a fixed cut-off, replace completed weeks with actual receipts and payments, and add a new week at the end. Separate timing differences from permanent changes: an invoice paid late is different from a lost customer. Ask for a short variance explanation and a list of decisions with owners. Keep the previous forecast so the team can see whether collection assumptions are becoming more accurate. A model without a named internal owner is difficult to maintain after the engagement ends.
What should be in the CFO proposal?
Request a defined first deliverable, data responsibilities, an update schedule and a handover session. Clarify whether the CFO will chase receivables or only advise the person doing it. Ask how they handle missing information and whether your accounting team will maintain the forecast. Compare providers on the same scope: building a model, running weekly meetings and executing collection work are different services.
Does this replace a budget or monthly forecast?
No. A weekly cash forecast focuses on payment timing and near-term liquidity. A budget or longer-term forecast helps evaluate broader hiring, growth and investment choices. Ask how the short-term cash view connects to the company's longer-term plan, and which assumptions are shared. A fractional CFO can coordinate that connection while bookkeeping and payment processing remain with other team members.