Start with timing
A sale can be recorded today while collection happens weeks later. Suppliers may be paid before inventory is sold. The income statement alone does not explain available cash.
Connect sales to collections
Track receivable ages, agreed dates and realistic collections. Separate an amount owed from an amount expected in a particular week.
Treat inventory as a cash commitment
Slow-moving inventory ties up resources. Review movements, target stock levels and upcoming purchases before assessing funding needs.
Build a weekly view
Bring opening cash, expected receipts and payments into one weekly view. Discuss the assumptions and gaps. The cash planning template in our tools library is a useful starting point.
Take one practical step
Choose a short period with reliable information and assign ownership of each input. Compare forecasts with actuals and record the reasons for differences.
