The cash forecast is monthly. The account is emptiest on the 28th.

A month-end balance is one observation out of thirty, and it is reliably the least representative day in the month.

By Steve 5 min read
Abstract bridge artwork for The cash forecast is monthly. The account is emptiest on the 28th.

A business with a twelve-month cash forecast, every month showing a comfortable closing balance, can still have a finance manager who quietly holds back a supplier payment run in the last week of each month. Nothing in the forecast explains why. The forecast is not wrong. It is simply measuring the wrong day. Month-end balances are the figure that gets reported, because that is when the ledger closes. They are also the day on which the underlying rhythm of the business is most distorted: receipts from customer payment runs land…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Operations

Scroll to Top