Start with the timing, not just the total
A healthy sales month can still leave you waiting for customers to pay. Meanwhile, payroll, suppliers and rent keep moving. Before changing your pricing or taking on another commitment, separate the profit in your reports from the cash you can actually use.
- List the money currently available in your business accounts.
- List expected customer collections by the week you realistically expect payment.
- List known payments by due date, including payroll, tax obligations and debt payments.
Turn the next decision into a scenario
Build a weekly view of opening cash, expected receipts, payments and closing cash. BDC discusses a rolling 13-week forecast as one way to improve cash visibility. Treat your first version as a working hypothesis, then replace estimates with actual results as each week closes.
- Keep committed payments separate from optional spending.
- Test what happens if a large customer pays late.
- Show the cash effect of the hire, equipment purchase or expansion you are considering.
Give the forecast an owner
Choose who updates it, when it is reviewed and what needs a decision. A forecast with no owner quickly becomes another stale spreadsheet. Bring questions about collections, margins and payment timing to the same discussion so the team can act before a shortfall becomes urgent.
- Set a regular review time and one person responsible for the update.
- Record the assumptions behind uncertain receipts.
- Ask your accountant to help distinguish a timing problem from an underlying profitability problem.