Cash flow
Check next week’s cash before approving more credit
Your sales total can rise while your bank balance falls. A short cash plan shows whether the money you expect is likely to arrive before the payments you need to make.
Start with available money
Use the bank and cash balances you have checked. Exclude money reserved for a purpose you cannot change. Then list bills due before the end of next week: supplier invoices, wages, rent, delivery costs and other commitments.
Keep expected customer receipts in a separate column. A due date is a promise about timing; it is not a bank balance.
Work through a delayed-payment case
Suppose you have ₦300,000 available, expect ₦250,000 from customers and must pay ₦420,000 next week. If all expected receipts arrive in time, the plan leaves ₦130,000. If they do not arrive before the bills are due, you have a ₦120,000 gap.
The example is an arithmetic check, not a forecast for your business. Use your actual dates as well as amounts: a Friday receipt will not pay a bill due on Monday unless you already have the cash.
Decide what needs a conversation
Identify which customer payments need confirmation and which outgoing commitments you can discuss in advance. Avoid promising a new delivery based solely on a receipt that is already overdue.
Consider the cost of the stock you would release on a new credit sale. The sale price and the cash needed to replace that stock are different numbers. Both matter when deciding whether you can wait.
Update the plan with actual receipts
When a payment arrives, move it from expected to received. Do not leave it in both columns. When a payment is delayed, record the revised expectation and who is following up.
Compare last week’s plan with what happened. Repeated delays are useful evidence for the next plan; repeatedly copying the same expected date is not.
Questions people ask
Frequently asked questions
Is this a profit calculation?
No. It compares cash timing. A separate profit calculation includes income and costs according to your accounting method.
Should disputed money be included as an expected receipt?
Show it separately and explain the uncertainty. Do not rely on its full arrival without considering the unresolved dispute.