Plan upcoming receipts, payments and the cash balance your business needs. This guide offers a practical starting point, not a substitute for specialist advice.
1. Start with available cash
Use money the business can actually access today. Do not count invoiced but unpaid sales as available cash. Keep personal and business accounts distinct where possible.
2. List when money arrives
Estimate collection dates for invoices, product sales, subscriptions and other inflows. Invoice terms and delayed marketplace payouts often matter more than the month revenue was earned.
3. List outgoing payments
Include supplier bills, payroll, rent, VAT, tax estimates, software subscriptions and loan repayments by their actual expected payment dates.
4. Calculate your rolling balance
For each week or month, start with opening cash, add receipts, subtract payments, and carry the balance forward. Flag any negative balance before it occurs.
5. Run a downside scenario
Delay incoming payments and add unexpected costs. The difference between your usual and downside projections suggests how much reserve or payment flexibility you need.
Put it into practice
Use the tools below with numbers from your own business, then revise your assumptions against real results. Keep a record of the decisions you make and why.