Why sales and bank balance tell different stories
Sales, profit and available cash are different measures. Credit sales may count as revenue before the customer pays. Buying inventory uses cash before that inventory is sold. Loan principal repayments also use cash but are not the same as an operating expense.
For a wholesaler, workshop or service firm, a useful first step is to match expected customer receipts with upcoming supplier payments, payroll and other commitments.
பில் போட்டது மட்டும் பணம் வந்ததாகாது. வசூல் வரும் தேதியும், பணம் செலுத்த வேண்டிய தேதியும் சேர்த்துப் பாருங்கள்.
Build a rolling weekly forecast
Create one column for each of the next eight weeks. Start with available business cash, add realistically expected collections, then subtract supplier payments, payroll, rent, tax obligations, loan payments and planned purchases.
Closing cash = opening cash + cash receipts − cash payments. Carry each week's closing balance into the next week's opening balance. Update the forecast every week using actual receipts and revised dates.
A worked example: profitable but short of cash
Illustrative example: opening cash is ₹2,00,000. Expected collections this week are ₹1,00,000 and scheduled payments are ₹2,50,000. Closing cash is ₹50,000. If that collection is delayed, there is instead a ₹50,000 shortfall.
This does not prove the business is making a loss. It shows a timing risk. Confirm collection dates and discuss upcoming commitments early rather than treating every unpaid invoice as guaranteed cash.
Review overdue invoices and slow-moving stock
For each outstanding invoice, record the due date, amount, responsible team member, last follow-up and next agreed action. Separate disputed invoices from customers who have simply missed the payment date.
Review inventory by how long it has been held and how often it sells. Before reordering, check existing stock and confirmed demand. Avoid buying excess stock purely to receive a supplier discount.
Keep business cash separate
Record owner withdrawals and capital contributions clearly. Keep tax money and committed payments visible in the forecast so the bank balance is not mistaken for freely spendable cash.
Discuss tax provisions, financing and accounting treatment with your accountant. This guide is an operating checklist, not personalised financial or tax advice.
Your first action this week
List the next two weeks of due payments and expected collections. Identify the largest uncertain receipt, assign someone to confirm it and make a plan for a delayed-payment scenario. Then extend the forecast one week at a time.