A weekly cash flow check for a growing service business
You have work booked, invoices going out and a team to support. Before making the next spending decision, it helps to know what the next few weeks look like in cash.
A weekly cash review gives you a place to connect the work you are doing with the timing of money coming in and going out. Keep it simple enough that you can update it consistently. Here is a practical way to begin.
Start with cash you can actually use
Start with your current operating bank balance and check it against your accounting records. Exclude restricted or client-held funds. Mark payments already reflected in that balance so they are not subtracted twice.
Then list pending and upcoming payments, recording each once: payroll, contractor payments, rent, software, insurance and other commitments. Include known tax payments supplied by your tax professional. Annual renewals and one-off purchases deserve a line, too.
Place each item in the week you expect the cash to leave. A total for the month can hide a tight week in the middle.
Give expected receipts a realistic date
Review your open invoices and upcoming billing. For each meaningful receipt, record an amount, an expected payment date and the assumption behind it.
Has the invoice reached the right person? Does the client need to approve the work? Is there a question about the invoice? A follow-up can help you replace a hopeful date with a better-informed estimate.
Keep uncertain receipts visible. If a payment moves, update the forecast and look at the effect on the weeks around it. For businesses paid at the time of service, consider settlement timing, refunds and other differences between recorded sales and money arriving in the bank.
Check one service or project for delivery cost
Cash timing is one part of the picture. Profitability deserves its own check.
Choose a completed project or recurring service and compare revenue with the direct costs of delivering it. Look at staff time, contractor costs and other delivery expenses. Use a consistent approach to allocating those costs, and be clear about which overhead costs are not included.
Next, review what changed from the estimate. Did revisions grow? Did work outside the agreed scope become routine? Did a more expensive team member take on work planned for someone else?
That review gives you specific questions for the next proposal, staffing plan or pricing discussion. It also helps keep a busy calendar from being your only measure of performance.
Put a planned decision into the forecast
If you are considering a hire, a new software contract or another commitment, add it to the forecast before deciding.
For a hire, include compensation, employer payroll costs, benefits, equipment and onboarding. Think through the time needed to turn new capacity into client work, and the additional time before that work is collected.
Test a slower scenario as well. A delayed project or later payment may change the point at which cash gets tight. Write down the assumptions so you and your advisers can discuss the same picture.
Finish with an action and an owner
A weekly review is more useful when it changes what happens next. Record the action, who owns it and when it is due. That may be clearing up a billing question, checking a cost estimate or asking your accounting team to explain an unexpected balance.
At the next review, compare expected receipts and payments with what actually happened. Update the dates, note the reason for any meaningful difference, and move the forecast forward another week.
As a starting point, look far enough ahead to cover your billing and payroll cycles. A rolling 13-week view can be useful as the business becomes more complex, but it still depends on realistic assumptions and regular updates.
Keep the routine supported by reliable books
A forecast built from incomplete records can create false confidence. Reconciliations, a reliable monthly close and clear financial reports make the weekly conversation more useful. If you already have a bookkeeper, clarify who owns the forecast and who helps interpret the results.
Primary Care Financial supports growing service businesses with bookkeeping, reporting and fractional controller and CFO services. If you want help connecting your financial information to the next decision, a 15-minute Fit Call is a place to start.
This article is general business education. Decisions should reflect your business’s circumstances and advice from the appropriate professionals.
