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ITERAQ

06 · Cash flow and operating budgets · ITERAQ

In this guide

06 · Cash flow and operating budgets

See why even a profitable business can run out of cash and set up a 13-week follow-up.

Put it into practice

  1. Enter opening cash and expected collection dates
  2. Schedule wages, suppliers and other payments
  3. Test late-payment and lower-sales scenarios

Further reading: SBA · Business planning resources ↗

Create a rolling cash view

Illustrative opening cash is 1,000. Expected collections are 800 and payments are 1,200, leaving 600. If collections arrive a week late, the same period ends at −200. The business needs an action before the payment date even if an invoice has been issued.

Your worksheet

Week; opening cash; receipts by date; payments by date; closing cash; uncertainty.

Check your work

Carry each closing balance into the next week. Keep forecast and actual figures separate and update the timing regularly.

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