A profitable agency can still run out of cash. It happens most often to agencies that are growing: every new temp you place adds a weekly payroll cost now and a client payment weeks later. Win three new contracts in a month and your profit goes up while your bank balance goes down.
A cash flow forecast built for a recruitment business tells you which week that pinch arrives, how deep it goes, and what will fix it. It turns "will we be OK?" into a number and a date.
What we build
- A rolling 13 week forecast, week by week, starting from your actual bank balance.
- Contractor pay runs driven by your live contract book, not a monthly average.
- Client receipts modelled on each client's actual payment behaviour, not the terms written on the invoice.
- The big outgoings that catch agencies out: VAT quarters, PAYE, corporation tax, rent, commission and bonus runs.
- Invoice finance, if you use it, with advances, fees and retentions shown so you can see your real headroom.
- A written note on what the forecast means and what to decide, such as when you can afford the next consultant hire.
The questions it answers
| Question | What the forecast shows |
|---|---|
| Can we afford another consultant? | The week your balance can carry the extra salary without dipping below your safety buffer. |
| A client has asked for 60 day terms | The extra cash the new terms tie up, in pounds, before you agree. |
| Do we need invoice finance? | Whether the gap is permanent, seasonal or a one off, and how much facility it actually needs. |
| Can we take the bonus out this quarter? | Whether drawings or dividends leave enough to cover VAT and the next pay runs. |
Why recruitment needs its own forecast
Generic forecasting templates assume you get paid at roughly the same pace you spend. Contract recruitment breaks that assumption every single week. The forecast has to understand weekly pay runs, invoicing lag, client payment habits, perm fees with rebate periods, and the way VAT is charged on invoices you have not yet been paid for. We build it around those mechanics from day one.
If you want a quick sense of your own gap first, the cash gap calculator estimates how much cash your contract book ties up today. Our guide to recruitment agency cash flow covers the levers that close the gap.
Pricing
A quarterly cash flow forecast is included in our Scale tier at £1,250 a month. On Core and Growth we can quote a one off or recurring forecast as an add-on, in writing, before any work starts. All prices exclude VAT.