ZeroDelay Academy · Owner worksheet
Will you have enough cash when bills are due? A simple service business forecast
A month of profitable invoices can still end with less cash in the bank. Profit is earned when work is invoiced; cash arrives when customers pay. A short forecast that puts receipts and payments on actual dates shows the gap before it becomes a surprise.
By ZeroDelay.ai · An educational framework, not a customer case study
Three checks to do first
Step 1
Start from cash in the bank
Use the actual bank balance on the first day of the period, not the profit figure from your accounting report. Exclude money you have already committed, such as a check written but not cleared.
Step 2
Date the receipts you expect
List invoices by the date you realistically expect payment, based on how each customer has paid before. Keep deposits, financed jobs and slow payers separate. Quotes and unsent invoices are not receipts.
Step 3
Date every outflow
Payroll and payroll taxes, supplier bills, rent, loan payments, card payments, insurance, estimated tax and owner draws, each on its due date. Then add starting cash + receipts − outflows to get the closing balance, and check the lowest point inside the period, not just the end.
A worksheet using your own records
1. Weekly forecast
One column per week: opening cash, expected receipts, expected outflows, closing cash. Each week's closing cash is the next week's opening cash. Mark any week where the balance drops below the amount you need for the next payroll.
2. Invoiced vs received
Beside the forecast, track invoices raised and cash received for the same week. The difference is the change in money customers owe you. A growing gap can mean slower collection even while sales look strong.
3. Forecast vs actual
At the end of each week, write the actual receipts and outflows next to the forecast and note the reason for each large difference: late payment, unplanned purchase, timing shift. Adjust the next forecast using what actually happened, not what you hoped.
A fictional example to check the logic
Fictional teaching example, not a benchmark: a business starts the month with $5,000 in the bank. It expects $8,000 of customer payments to arrive and $9,500 of payroll, supplier and other payments to go out. Closing cash = $5,000 + $8,000 − $9,500 = $3,500.
The same month it invoiced $12,000 of work with $9,000 of related costs, so the work was profitable on paper. But only $8,000 was collected; $12,000 − $8,000 = $4,000 is still owed by customers. Profit on invoices did not become cash in the same month.
Timing matters inside the month: if $6,000 of payroll is due in week one and only $2,000 of payments arrive by then, the balance after week one is $5,000 + $2,000 − $6,000 = $1,000, even though the month closes at $3,500. Forecast vs actual: if receipts come in at $6,500 instead of $8,000, closing cash is $5,000 + $6,500 − $9,500 = $2,000, $1,500 below the forecast.
What to decide next
If the lowest weekly balance falls below what you need for payroll, act on timing before it happens: invoice on completion, request deposits on larger jobs, follow up on overdue invoices, or move discretionary purchases. Review the forecast with your bookkeeper or accountant before taking on debt or new fixed costs.
What this check cannot tell you
A forecast is only as good as its payment dates, and this guide offers no target cash balance. It is not accounting, tax or lending advice. The free diagnostic does not connect to your bank or accounting software; it uses your answers to identify a health score and top constraint. The optional paid 90-Day Plan uses the figures you provide and does not guarantee cash outcomes.
The free Profit Leak Check focuses on job costs and capacity; it does not model cash timing. Explore the free Service Business Profit Leak Check. Calculations stay in your browser.