Busy—but where’s
the cash going?

Cash available today

Start with the actual balance across the business accounts you want to track. Keep the scope consistent: transfers between those accounts are not new income or expenses.

Then ask what that money already needs to cover. An upcoming tax payment, payroll run or equipment instalment may explain why a healthy-looking balance doesn’t feel available to spend.

Ask yourself: Which commitments are already attached to the cash in my bank?

Receipts you realistically expect

An invoice sent is not the same as money received. For the next 30 days, list customer payments you reasonably expect to clear, including overdue invoices only where the timing is credible.

A good sales month can still leave a cash gap if customers pay after your suppliers and staff need to be paid. Clear payment terms, prompt invoicing and consistent follow-up can help you manage that timing.

Ask yourself: What changes if a large customer pays two weeks later than expected?

Cash that must leave

Look beyond the regular bills. Include supplier payments, wages, super, rent, tax payments, debt repayments, equipment purchases and any planned owner withdrawals.

Use the amounts that will actually move through your accounts, including GST where it applies. Record each payment once. For example, if you list take-home wages separately, include PAYG withholding within the relevant tax payment rather than counting gross wages and withholding again.

Ask yourself: Have I included the less frequent payments, as well as the weekly ones?

Margin on your sales

Being busy and earning a worthwhile return are different measures. Review what remains from sales after the direct costs of delivering the work, then consider the overheads that still need to be covered.

For example, a job priced at $10,000 with $7,000 of direct costs leaves $3,000 before overheads and other expenses. That is a 30% gross margin on the sale, not $3,000 of take-home profit. Use a consistent GST basis and cost classification when comparing jobs.

Ask yourself: Which work contributes most towards overheads and profit—and am I allowing for all of its costs?

Your projected closing cash and buffer

Add expected cash receipts to opening cash, then subtract expected payments. The result is an estimate of what could remain at the end of the period.

Compare that figure with a cash buffer you choose for your business. The appropriate buffer depends on your payment cycles, commitments, seasonality and uncertainty. There is no single amount that suits everyone.

A positive closing balance also doesn’t guarantee you can meet every payment along the way. A bill due tomorrow can create a problem even if a large receipt arrives at the end of the month. Use a weekly or daily forecast where timing is tight.

Ask yourself: Will cash be available when I need it, and what room does that leave for the next decision?

Start with a snapshot, then a conversation

You don’t need perfect numbers to begin asking better questions. Use reasonable estimates, check them against your records and update them as payment dates become clearer.

The calculator below brings four of these cash measures together. It does not calculate profit or margin: those need a separate look at sales and costs. Use your snapshot to identify the business question you most want answered.