Cash management: anticipate pressure and make informed decisions

Your business sells, yet you constantly check the bank account. Cash management starts with a concrete question: when could commitments exceed available resources? Today’s balance is insufficient. Match expected payments with realistically collectible receipts and decide before the deadline.

Separate losses from payment timing

A business losing money and a profitable business collecting late need different decisions. Review profit, receivables, inventory, payables and financing commitments. Sales may be recognised before collection. Loan principal consumes cash without being an income statement expense. Investment payments and depreciation also follow different schedules.

The [Swiss business portal explains liquidity planning](https://www.kmu.admin.ch/kmu/en/home/concrete-know-how/finances/accounting-and-auditing/financial-planning/liquidity-planning.html) as a way to anticipate resources needed over time. Separate profit, movements and bank balances in the decision.

Build a usable cash forecast

• Reconcile all bank balances at one date and identify restricted amounts.
• Schedule invoices, deposits and other receipts on credible dates, flagging uncertainty.
• Enter payroll, suppliers, taxes, debt, investment and owner remuneration on payment dates.
• Calculate each period’s balance, check major dates within the month and identify the lowest point.
• Separate confirmed funding from pending applications and retain a dated scenario.

A [thirteen week cash plan](/insights/tableau-de-tresorerie-13-semaines) shows nearby commitments. A longer monthly view helps with seasonality, investment and decisions whose effects emerge later. The horizon depends on your cycle.

Fictional example: the customer pays next month

Entirely fictional simplified cash flows. Opening cash is €40,000. Expected receipts are €70,000 and payments €80,000, leaving €30,000. If €25,000 of receipts move to next month, cash falls to €5,000. Recognised revenue may be unchanged while payment capacity deteriorates.

Month end balances can also hide a payment due before a large receipt. Put major flows on their actual dates before concluding. This is not a client result or a substitute for your own schedule.

Manage working capital

[Working capital requirements reflect the funding needed for the operating cycle](https://bpifrance-creation.fr/besoin-fonds-roulement-bfr). As a simplified starting point, compare inventory and receivables with supplier payables, then include other relevant operating balances. Keep tax treatment consistent across the figures.

• Customers: invoice delivered work, resolve disputes and document payment commitments.
• Inventory: assess age, turnover, confirmed orders and committed purchases before cutting stock.
• Suppliers: negotiate realistic terms within applicable rules rather than treating overdue payments as a permanent strategy.
• New orders: quantify deposits and advance costs before accepting growth the business cannot fund.

When cash turns negative

Distinguish confirmed banking facilities from payments simply being delayed. Rebuild upcoming obligations, confirmed receipts and commitments that could be rescheduled by agreement. If the business may be unable to meet obligations, promptly contact qualified advisers to assess the situation and applicable steps. A dashboard is neither a legal remedy nor funding.

Mercova does not lend money. We clarify causes, quantify scenarios and prepare financial decisions with the owner.

Connect weekly updates with monthly interpretation

Compare expected and actual flows at each update. Differences in amount and timing require different explanations. Assign an owner and deadline for material pressures. Monthly, reconcile cash and profit to identify whether improvement comes from performance, an unusual receipt or deferred payments.

See the [profit to cash bridge in our fictional example](/exemple-rapport-financier-mensuel#proof-cash). If the need is recurring, [financial management support](/pilotage-financier) can provide continuity throughout the year with a frequency suited to your data and decisions.