*transcript formatted from original video (watch video for full version)

To keep a handle on the week-to-week cashflow in their businesses, we help our clients using a tool called a “weekly cash call.”

It’s an Excel schedule we send them each week that lays out for them how much cash is on hand, how much cash is available and what’s going out the door in the coming week to 10 days. We also highlight for them what major cash inflows might be happening in the next week to 10 days.

Basically it’s a current aging of the accounts payable. It shows them everybody that they owe, how much they own, and when they owe it. We then highlight on accounts payable the bills that we think need to go out the door that week so they know how much cash is going out the door.

  • Also highlighted for them is their current cash cash position. If we sent you that schedule today, it would tell you exactly how much you have in the bank as of the close of business yesterday- what lines of credit are available and what’s available on credit cards.
  • We don’t like to tap into credit cards because it’s not a good use of that, but there may be situations where that needs to be known in order to get through the next week.
  • The schedule will also highlight for you any major swings in cashflow in the next week to 10 days.

For example, if this were a Tuesday we’re going to highlight, then on Friday you have to make payroll biweekly or semimonthly. That’s a big cash hit. That doesn’t happen every week.

We want to make sure we’re planning for that and aware of that and budgeting cash through that for the next week to 10 days. We also may highlight for you any big accounts receivable that we plan on based on the terms and regular paying customers.

The schedule is just a quick tool to keep top of mind how much cash you have on hand. If you’re looking at that on a week to week basis, you’ve got a top-of-mind comfort level on where you’re at in your cashflow and it’s probably going to help you sleep a little bit better at night.

If you’d like some more information on managing and improving cashflow, check out our Business Owners Ultimate Guide to Improving and Managing Cashflow.