Weekly Cash Flow Preparation

Department: Finance & Accounting
Process Owner: Accounting Coordinator
Last Updated: January 2026

1. Overview and Purpose

Objective:
To define the weekly process for preparing, updating, and reviewing the organization's short-term cash flow forecast. This SOP ensures timely visibility into expected disbursements, available cash balances, and anticipated funding needs, supporting payment scheduling and liquidity management.

2. Scope

This SOP applies to all weekly cash flow activities for the organization's general operating account. It includes updating the rolling cash forecast in Excel, incorporating newly approved bills, reviewing bank balances, and coordinating funding or payment holds as needed.

3. Step-by-Step Process

3.1 Copy and Set Up Weekly Workbook

• Navigate to the prior week's Cash Flow Forecast workbook on the shared drive.
• Make a copy of the file and name it: Cash Flow - [Monday date].xlsx (e.g., Cash Flow - Jan 13 2026.xlsx)
• Delete the prior week's forecast column and insert a new one for the current week.
• Enter the beginning bank balance (as of Monday) based on actual online bank data.

Reviewer/Back-up: Accounting Coordinator / Controller

3.2 Pull and Reconcile Open AP Items

• Log into the accounts payable system and run the "Open Bills" report.
• Export the report to Excel and filter for all unpaid invoices due this week.
• Compare the exported list to the current cash flow forecast column.
• Adjust the forecast to reflect only those bills that are actually planned to be paid (based on approvals or funding).
• Include any additional expected payments (e.g., urgent bills, manual payments, one-offs).

Reviewer/Back-up: AP Specialist / Accounting Coordinator

3.3 Review and Categorize Expected Disbursements

• Organize forecasted disbursements by vendor or category (e.g., AP, Payroll, Grants, Capital).
• Tag capital project-related items for additional tracking by adding "[Capital]" prefix to the vendor name in the forecast.
• Review for any known timing anomalies (e.g., delayed payments, double-payments).
• Note any discretionary payments being held or rescheduled.

Reviewer/Back-up: Controller / Finance Director

3.4 Monitor Bank Balances and Funding Needs

• Log into online banking portal and note available balances.
• Compare forecasted disbursements to available cash.
• Identify whether cash transfers between accounts are needed.
• If funding shortfall is projected, notify Finance Director and Controller to initiate cash movement or deferments. Finance Director has final authority to approve payment deferrals; Controller recommends priority and timing.

Reviewer/Back-up: Controller

3.5 Finalize and Share Forecast

• Verify: Beginning balance matches bank, all approved bills included, and disbursements don't exceed available cash (coordinate funding if needed).
• Save final version of the weekly workbook to the shared drive (with Monday date in file name).
• Notify Controller, Finance Director, and Accounting Consultant (if applicable) that the forecast is complete.
• Include any notes or flagged payments in the file or in email summary.
• Archive prior week's version in the same shared folder.

Reviewer/Back-up: Finance Director

4. Key Roles and Responsibilities

Out-of-Office Coverage: If the Accounting Coordinator is unavailable, the Controller assumes primary responsibility for preparing and distributing the weekly cash flow forecast. All system access and shared drive permissions should be verified in advance to ensure continuity.

5. Key Files and Systems

• Weekly Cash Flow Workbook (Excel) – Stored on shared drive
• Accounts Payable System – Source of approved unpaid invoices
• Accounting Software – For posted disbursement records and vendor detail
• Online Banking – Used to verify cash balances
• Forecast Archive – Prior weeks' forecasts maintained in dated folders

6. Exceptions and Special Cases

• Manual Payments: Any off-cycle or manually cut checks must be manually entered in the cash forecast.
• Capital Project Vendors: Flagged separately in forecast for review by Controller and Accounting Consultant (if applicable).
• Payroll Weeks: Payroll is a standing item; always confirmed and added based on timing.
• Cash Transfers: Forecast must reflect both source and destination accounts for intercompany or project-based cash movement.

7. Risks and Controls Summary