The month-end balance was £180,000. On the 22nd it was £9,000.

A monthly cash forecast reports the one day of the month that flatters you most, and hides the only number that can actually stop the business.

By Steve 5 min read
Abstract bridge artwork for The month-end balance was £180,000. On the 22nd it was £9,000.

A business can be profitable, growing, and comfortably inside its facility at every single month end, and still come within a day of missing payroll on the 22nd. The monthly cash forecast will not show it. Not because the forecast is wrong, but because it reports a balance on one date, and the date it reports is the least representative day in the month. The number that constrains a business is not its average cash position or its closing balance. It is the minimum balance it touches between now and…

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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.

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