Thursday night. Payroll runs tomorrow. You open the bank app, squint at the balance, and start doing that thing where you mentally move money around like a game of Tetris. 😅

Here’s the thing: almost every cash crunch is visible a few weeks ahead. You just have to look. This quick check takes five minutes, once a week, and it turns “surprise!” into “okay, I’ve got a plan.”

Minute 1: Start with real cash

Use the balance in your actual bank account today, your operating account only. Leave out your tax savings. That money is already spoken for! (Here’s how much should be in there.)

Minute 2: Add money coming in (be picky!)

Pull your A/R aging report and add only the payments you truly trust will arrive in the next three weeks. The customer who always pays on time? Count it. The one who’s 75 days late and not answering? Don’t. Being a little pessimistic here is your friend. (Here’s how to check your A/R in 5 minutes.)

Minute 3: Subtract payroll

Every payroll in the next three weeks, including the payroll taxes that go with it. If you pay weekly, that might be three payrolls! Don’t forget your own draw if you take one regularly.

Minute 4: Subtract bills due

Subs, supplier bills, loan and truck payments, credit card payments, insurance, rent. Your A/P aging report is a great place to start. Then add anything that isn’t in there yet, like a big materials order you know is coming.

Minute 5: What’s left?

Made-up numbers for illustration only.

Short? Here’s what you can do with a 3-week head start

• Call your late customers this week, not next month.
• Bill the next milestone the day you hit it.
• Ask a supplier about moving a payment date. Much easier to ask early than late!
• Hold off on a big purchase or your owner draw for a week or two.
• Talk to your bank about a line of credit before you need it. Banks like borrowers who plan ahead.

And if this keeps happening even though business is good, you might be profitable but broke. That post walks through where the cash is hiding.

How I make this easier

My clients get a cash flow statement, A/R aging and A/P aging in their month-end package by the 15th, so the numbers for this check are always current and accurate. See a sample month-end package.

Tired of payroll-day surprises?

Start with a free books health check. You’ll get a score, your top risk areas, and a straight answer on what it would take to see your cash clearly. No pressure, and no judgment. Promise!

This post is general information, not tax, legal or financial advice. Holly b. Accounting is a bookkeeping firm, not a CPA firm. Examples use made-up numbers.