The cash looks better because purchases were delayed
This week's result looks better than planned
Suppose a supplier delivery moves to next week, taking its payment with it. The bank balance is higher than forecast. It may feel as though the business has created room for another purchase, but the original materials are still needed.
Explain whether the improvement is a saving or a timing change. The two can lead to very different decisions about what the business can afford next.
Keep the original commitment in view
Check the order, agreed payment terms and revised delivery information. Identify whether a payment date actually changed or whether only the physical delivery moved. Do not assume those dates always move together.
If the purchase is still required, keep it in the forecast with the best supported timing. Note what is awaiting confirmation rather than removing the line until an invoice appears.
Show the effect on later weeks
business.gov.au's cash-flow approach follows incoming and outgoing amounts across reporting periods. Carry the delayed payment into the relevant later period and recalculate the balances that follow.
In a simple hypothetical example, moving a $12,000 payment from week one to week two improves week one's closing cash by $12,000. With everything else unchanged, it creates no additional cash after the payment has been made.
Check the job consequences too
A later delivery can change labour sequencing, hire periods or the date a progress claim can be submitted. Ask the project team whether any linked cash movements also need updating.
Avoid changing those figures automatically. Record which consequences are confirmed and which are scenarios. A delivery delay might be absorbed by other work, or it might affect the critical activities; the job records need to establish which applies.
Distinguish a cancellation from a postponement
If the business decides it no longer needs an order, check cancellation rights, charges and confirmation with the supplier. Show a genuine reduction only when the commercial position supports it.
Do not describe the full order value as cash saved while a cancellation fee or replacement purchase remains unrecorded. Ask your adviser about disputed commitments rather than assuming an unused item can be cancelled without cost.
Review new spending against the full window
Before using the temporarily higher balance, look through the next several weeks and identify the delayed commitments already waiting there. Bring the revised delivery and payment information into the regular cash review.
If the business is repeatedly moving commitments because it cannot fund them, discuss the wider position with your adviser or CRP. A series of date changes can make one week look manageable while leaving the underlying shortage unresolved.