The month-end balance is always comfortable. The 22nd never is.

A monthly cash forecast can show healthy headroom every single period while the business quietly runs on fumes for three days in the middle of each month.

By Steve 5 min read
Abstract bridge artwork for The month-end balance is always comfortable. The 22nd never is.

A monthly cash forecast is a series of photographs taken on the last day of each month. Between the photographs, anything can happen, and in most businesses something does. The closing balance looks fine. The 22nd is a scramble. Somebody rings the largest debtor, somebody else holds back a supplier payment run, and by the 31st the picture has repaired itself in time for the next photograph. This is not a forecasting failure in the usual sense. The numbers are right. The resolution is wrong. And the cost of the…

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