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//// Financial · Cash Planning

12-Month Cash Flow Forecast

Invoicing ≠ collecting. Enter global fixed costs, a tax set-aside %, and monthly collections — get a full-year view of risk months, worst-case balance, average surplus, and whether your safety buffer holds all 12 months.

401(k) Limit 2024$23,000(+$7,500 catch-up 50+)

Roth IRA Limit$7,000(MAGI phase-out applies)

S&P 500 Avg Return~10%/yr(nominal, historical)

Global Settings

Current savings balance

Fixed expenses / monthRent, subscriptions, insurance

Tax set-aside %Auto-deducted from collections

Safety buffer (months)Min. months of expenses to hold

One-Time Expenses (up to 5)

DescriptionMonth

Amount

Monthly Cash Flow — Jan to Dec

Enter invoiced and collected amounts per month. Variable expenses = project costs, travel, or other month-specific costs beyond fixed overhead.

MonthInvoiced $Collected $Variable $Tax Set-asideNetRunning

Jan

$2K$700$9K

Feb

$2K$3K$12K

Mar

$2K$2K$14K

Apr

$2K$3K$17K

May

$2K$4K$21K

Jun

$3K$5K$25K

Jul

$2K$4K$29K

Aug

$2K$4K$33K

Sep

$3K$5K$38K

Oct

$2K$4K$42K

Nov

$2K$3K$45K

Dec

$2K$1K$46K

Total$110,000$100,500$4,400$25,125$38,175$46,175

Cash negative Below 3-mo buffer

Year-End Balance

$46,175

Started at $8,000

12-Month Net Flow

$38,175

Cash positive for the year

Avg Monthly Surplus

$3,181

After all expenses + tax set-aside

Worst Month Balance

$8,700

January — lowest balance

Cash Position & Reserve

Reserve Coverage

1.5 mo

starting reserves

3-Mo Reserve Target

$15,581

6-Mo Reserve Target

$31,163

Avg Monthly Burn

$5,194

fixed + var + taxes

Balance stays above your 3-month safety buffer all year. Year-end balance: $46,175.

Invoice Collection Rate: 91.4%

You invoiced $110,000 and collected $100,500 across the year. The $9,500 difference is outstanding — factor this lag into your month-by-month collection figures.

Monthly net cash flow

collections − (fixed + variable + taxSetAside + oneTime)

(per month) taxSetAside = collections × 25%

= Avg $3,181/mo

Collections ≠ invoices. Use the date cash hits your account, not when you bill. Tax set-aside is auto-reserved so you're never caught short at estimated tax time.

Safety buffer threshold

fixedExpenses × safetyBufferMonths

$2,500 × 3

= $7,500

Months where your cumulative balance drops below this are flagged as risk months — even if you're technically cash-positive.

Year-end cumulative balance

startingBalance + Σ(monthly net cash flows, Jan–Dec)

$8,000 + $38,175

= $46,175

Average monthly burn

totalExpenses / 12

$62,325 / 12

= $5,194

Cash runway

startingBalance / (avgBurn − avgCollections)

N/A — cash flow positive

= Positive — no runway concern

Only relevant when average monthly expenses exceed average collections.

Recommended cash reserve

avgMonthlyExpenses × 3 to 6

$5,194 × 3 to 6

= $15,581 – $31,163

Freelancers typically need 6 months due to income volatility.

Key insight

The #1 cash flow mistake freelancers make: confusing invoicing with collecting. A $10K invoice sent in January on Net-30 terms lands in February — which is why this tool separates "invoices sent" from "collections received." Track collections, not billings. The 25% tax set-aside auto-reserves for estimated taxes so that Q1/Q2/Q3/Q4 payments don't blindside you.

Use this result in →

Quarterly Safe Harbor →Project Profitability →Financial Snapshot →

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