Three cash-flow questions to check every week

When does money actually reach the account?

Recognized revenue does not mean cash has arrived. Credit sales, platform settlements and withheld balances can create a gap between the sale date and when the business can use the money.

The tracking table should record expected receipt dates, certainty levels and collection owners.

Where is cash tied up?

Slow inventory, overdue receivables and prepaid costs can reduce cash even while sales continue. Each week, owners should examine these three groups separately instead of only total revenue.

The goal is not to minimize every cash commitment at any cost, but to know which supports growth and which has become a bottleneck.

Forecast weekly to leave time for action

An eight-week forecast reveals cash-shortage risk before payment deadlines. The table needs only opening balance, expected receipts, mandatory payments and closing balance.

Finding a gap early leaves time to accelerate collections, adjust purchasing schedules or negotiate deadlines rather than act in crisis.

A simple example: profitable, but cash has not arrived

Suppose a business delivers goods and records VND 100 million in revenue, with VND 80 million in product and related costs. Pre-tax profit on this simplified transaction is VND 20 million. But if the customer has not paid during the month while the business has already paid VND 80 million, the transaction creates a VND 80 million cash outflow that month.

With an opening monthly balance of VND 50 million and no other cash flows, the business is VND 30 million short of covering payments despite the calculated profit. This hypothetical example distinguishes recognition timing from cash timing; it is not bookkeeping guidance or a conclusion about a specific financial report. Actual situations also involve taxes, inventory, assets, prepaid expenses and other items.

A formula for one forecast week

Week-end balance = opening weekly balance + expected actual receipts − expected actual payments. The previous week's closing balance becomes the next week's opening balance. Include only usable cash; do not count unconfirmed loan drawdowns or revenue without a collection schedule as available money.

Assume the week starts with VND 50 million, expected receipts are VND 30 million, supplier payments VND 40 million, and salaries and other costs VND 25 million. The closing balance is VND 15 million. If the business sets a VND 20 million reserve threshold for its own operating needs, address the VND 5 million gap before payments fall due. This threshold is hypothetical, not universal.

Add a delayed-collection scenario to avoid excessive optimism

Create at least two columns: collections on confirmed schedules and collections later than expected. Record each receivable's due date, owner and certainty. Compare forecasts with actual weekly receipts to update discrepancies. Do not use an unconfirmed major receipt to commit to payments that cannot be delayed.

Prioritize clarifying receivables, negotiating payment timing within contracts, reviewing new purchases and protecting essential spending. Discount clearance should be considered only after calculating collections and profit effects. Additional borrowing can bridge timing gaps but does not itself fix a loss-making sales model.

The weekly review should answer: when will cash fall below the operating threshold, which receipts may be late, and who must do what before due dates? For accounting, tax, capital or contractual matters, consult the responsible professional using actual supporting records.

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