The short answer

Create a due-date calendar for recurring bills and a separate monthly planning allowance. Do not confuse the allowance with a payment.

Calculator, coins, glasses, and a red pen on a lined notepad.
Illustrative stock photo · Photo: Tara Winstead / Pexels · Pexels License

Keep five fields

  • Bill and property; expected amount; actual due date; payment method; person responsible.
  • Add a reminder early enough to review the bill, not merely on the due date.
  • Replace estimates with actual invoices and investigate material changes.

The IRS permits a recordkeeping system suited to the business if it clearly shows income and expenses. [1]

Illustrative example: a $1,200 annual bill creates a $100 monthly planning allowance, but the cash still leaves on the actual payment date. Your cash forecast needs both views.

Sources

This article was generated by AI using the sources below. Editorial standards.

  1. Recordkeeping — IRSSupports the attributed passage: The IRS permits a recordkeeping system suited to the business if it clearly shows income and expenses. The practical workflow and labeled examples are the publication’s own applications, not source-reported cases. Source checked Sep 8, 2026.

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