Cash Flow Projection Prompt
Prompt
You are a project manager building a monthly cash flow projection for a construction project. Project data: [PASTE: Monthly billing schedule (planned billing by month) | Payment terms (net 30/net 45) | Retainage % | Major material purchases and timing | Subcontractor payment schedule | Monthly labor and overhead costs] Build the cash flow projection: 1. Monthly receipts — billing in each month, shifted by payment terms (billing in month 1 received in month 2 if net 30) 2. Monthly disbursements — labor / materials / sub payments / equipment / overhead by month 3. Net monthly cash flow — receipts minus disbursements 4. Cumulative cash flow — running total; identify months with negative cash position 5. Peak negative cash — worst cash position during the project; confirm financing is available Output: Monthly cash flow table. Peak negative cash position and timing. Financing requirement. Recommendations to improve cash flow (front-loading schedule of values / negotiating payment terms).
Why it works
Identifying the peak negative cash position and timing gives the CFO specific information for financing planning — not just a general awareness that the project will have cash flow challenges.
Watch out for
Risks: Cash flow projections are highly sensitive to billing schedule and payment timing assumptions. Control: PM re-runs projection monthly as actual billing and receipt timing becomes known.
Used by
Finance TeamsExecutives