Look at cash dependency as well as revenue share

Record the revenue attributable to major customers, but also inspect when their receipts are expected and which commitments depend on them. Annual percentages do not describe every week’s cash exposure. Separate invoiced amounts, signed future work and pipeline opportunities, with a realistic view of payment patterns.

Trace a single payment through the forecast

Illustration only: your weekly forecast shows £25,000 closing cash after an expected £40,000 customer receipt. If that receipt moves to a later week while payments remain unchanged, the model shows a £15,000 gap. That does not establish a permanent loss or an available overdraft. It identifies a timing exposure to investigate before relying on the projected balance.

Include the cost of delivering the work

A significant contract may require stock, subcontractors or additional staff before payment. Connect those costs to the collection schedule. If the customer changes its order timing or disputes an invoice, test the effect on both receipts and commitments. Do not assume every supplier payment can be postponed when a customer pays late.

Prepare scenarios with specific assumptions

Record what changes in each case: a four-week delay, a smaller order or a longer approval process. Use the relevant contractual and trading evidence without treating any scenario as certain. Review financing arrangements with the appropriate provider rather than assuming a facility will be extended. The forecast should show unresolved gaps clearly.

Agree actions and keep the evidence current

Assign ownership for confirming invoices, resolving disputes and updating the forecast. Management may also review contract terms, credit processes or the commercial pipeline with the relevant advisers. A broader customer-diversification plan takes time; a cash review should still identify immediate decisions. Our 13-week forecast guide shows how to maintain a near-term review without losing sight of longer commitments.

Connect the guide to your business.

Discuss the decision, information available and the scope of support you need.

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