The week ends in surplus. Can you pay Wednesday’s wages?
The weekly total looks comfortable
Suppose the business starts a week with $8,000. It expects $20,000 from a customer on Friday and has $15,000 of payments due on Wednesday. The week's closing figure is positive, but the payment sequence contains a problem.
In this simplified example, Wednesday is $7,000 short before Friday's receipt. A weekly summary can hide that gap when it adds all incoming money before considering when payments leave.
Open the tight week day by day
List the actual expected receipt and payment dates for the week. Use the bank balance available at the start and show the balance after each day's movements. Keep any restricted money or unconfirmed funding separate.
You do not need a daily model for every distant week. Start with the week containing a large payroll, supplier release or loan payment that depends on a later customer receipt.
Check the dates behind the entries
Ask whether the receipt date is confirmed, estimated or simply the date on the invoice. Check the scheduled payment date against the actual obligation. Account for bank processing uncertainty where relevant rather than assuming every transfer is instantaneous.
business.gov.au asks forecasters to consider when incoming and outgoing money will move. Here, a daily view reveals the gap hidden by the weekly closing figure.
Do not fix the spreadsheet by moving an obligation
Changing Wednesday's payment to Friday makes the sheet look better without creating an agreement. Keep the original commitment visible until any revised arrangement is properly confirmed.
Discuss a genuine gap early with your accountant and the relevant party. Do not treat wages, tax, supplier debts and loan commitments as interchangeable entries that can all be postponed at will.
Show the proposed solution separately
If a customer may pay earlier or funding may become available, add a clearly labelled scenario. Identify who is checking it and when an answer is needed. Leave the unsupported amount out of the confirmed cash position.
Recalculate the later weeks too. Bringing forward a receipt changes its timing; it does not create a second receipt next week. Avoid counting the same customer payment twice to solve two shortages.
Use the earliest gap to start the conversation
Bring the daily sequence, evidence for the dates and proposed actions to the adviser. If the business may be unable to meet debts when due, seek prompt professional advice rather than relying on a positive Friday balance.
CRP can discuss the resulting business pressure. Explain the amount and date of the first gap through the contact form below, and keep the underlying forecast available for review.