A business can be profitable on paper and still struggle to pay bills when customer receipts arrive later than expenses fall due. A rolling cash-flow forecast makes timing visible.
Start with the requirements
List expected receipts and payments by week for the next several months. Include payroll, rent, supplier invoices, tax payments, loan instalments and one-off expenses. Use realistic collection dates rather than invoice dates, and create a separate scenario for slower sales or late customer payments.
Build a repeatable process
Update the forecast regularly with actual results. Follow up overdue invoices, agree supplier terms before cash becomes tight and avoid treating tax collected or funds reserved for obligations as freely available cash. Set an alert level that triggers a review before the bank balance becomes critical.
Check the latest guidance
Financing and tax decisions should be based on the company’s actual circumstances. Consult a qualified accountant or financial adviser before making major borrowing or payment decisions.