The short answer

List expected cash receipts and actual bills by week. Show uncertain rent separately instead of assuming every charge will arrive on time.

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

Use a running balance

Begin with available operating cash, excluding restricted funds. Add expected receipts, subtract scheduled outflows and mark the lowest projected balance. Put unapproved work in a separate scenario rather than hiding it inside the base case.

The IRS identifies financial-statement preparation and business monitoring as uses for records. [1]

Illustrative example: $2,000 opening cash plus $1,400 receipts minus $2,700 bills leaves $700. If the receipt slips a week, the timing may matter more than the month-end total. Review before committing to optional work.

Sources

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

  1. Recordkeeping — IRSSupports the attributed passage: The IRS identifies financial-statement preparation and business monitoring as uses for records. 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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