Cash Flow

Cash Flow Forecasting & Payroll Planning

Overview

Build a rolling 4–13 week cash flow projection, assess whether the business can make payroll, identify and chase overdue invoices to close gaps, and provide a next-month outlook with risk flags.

Workflow

Step 1: Build Cash Flow Snapshot

Collect from user:

• Current bank balance(s) and date
• Expected inflows by week: confirmed receivables, recurring revenue, other income
• Expected outflows by week: payroll, rent, loan payments, vendor payments, discretionary spend

Build a weekly projection table:

• Minimum cushion = 2 weeks of fixed costs (payroll + rent + loan payments)
• Flag any week where ending balance < minimum cushion in red

Step 2: Assess Payroll Feasibility

For each payroll date in the projection window:

• CLEARED — Ending balance ≥ payroll amount + 2-week cushion after payroll
• TIGHT — Ending balance ≥ payroll amount but < cushion after payroll
• SHORTFALL — Ending balance < payroll amount

If SHORTFALL: immediately escalate to Step 3.

Step 3: Close Gaps (If Shortfall or Tight)

Prioritized gap-closing actions:

1. Chase overdue invoices — Run invoice-chase skill on top-priority AR
2. Defer non-critical spend — List discretionary outflows that can shift ≥ 1 week
3. Accelerate receivables — Offer early-pay discounts (1–2%) on outstanding invoices
4. Tap credit line — If available, calculate minimum draw needed
5. Owner draw delay — Flag owner distributions that can be postponed

Step 4: Next-Month Outlook

Summarize:

• Projected opening and closing balance for the month
• Largest risk items (biggest outflow, most uncertain inflow)
• Key dates to watch (payroll, rent, loan payments, large receivable due dates)
• Confidence level: HIGH / MEDIUM / LOW (based on % of inflows that are confirmed vs. estimated)

Step 5: Output Action Plan

Deliver:

1. Cash flow projection table (weekly)
2. Payroll assessment with status per pay date
3. Gap-closing action list ranked by speed-to-cash
4. Next-month outlook summary
5. "Do this today" — top 3 actions ranked by urgency

Notes

• Always use the most recent bank balance available; note the date
• Separate "confirmed" inflows (signed PO, scheduled payment) from "expected" (verbal, habitual but not committed)
• Flag any projection that assumes > 50% unconfirmed inflows as LOW confidence