A lot of business owners aren’t thrilled to admit this, but I hear it all the time: “I just look at my bank balance and hope for the best.”
And listen, I get it. When your business is small and every dollar moves quickly, the bank balance feels like the easiest thing to check. But as your business grows, that approach stops working. There’s just too much happening, payroll, subcontractors, business loans, quarterly taxes, uneven billing, to rely on one number that changes hourly.
So let’s talk about what does work.
1. Build a Simple 12-Week Cash Flow View
This doesn’t need to be complicated. You just need a rolling weekly picture of:
- Income you actually expect
- Recurring expenses
- Payroll runs
- Contractor payments
- Loan payments
- Taxes
You can do this in an Excel or Google Sheets spreadsheet, and update it weekly. Once you can see the next 90 days, decisions get a whole lot calmer.
2. Separate Your Cash Instead of Letting It All Sit in One Account
One operating account trying to do everything limits your visibility and ability to plan.
Ideally, you’d have:
- Operating account – for regular expenses and payroll. You can have a separate account for payroll if this is helpful for your planning, but it’s not necessary.
- Tax savings account – to set aside funds for your quarterly or annual federal and state taxes.
- Reserve Capital savings account – 2-3 months worth of operating expenses. This is your emergency and opportunity fund.
When money is parked where it belongs, you stop feeling like everything is a guessing game.
3. Pay Attention to Rolling Revenue, Not Daily Balances
Your bank balance is noisy. Revenue trends are not.
A steady 90-day revenue window gives you a much clearer view of how healthy the business actually is.
4. Tighten Up Billing and Collections
If your billing is unpredictable, your cash flow will be unpredictable.
And if your clients are slow to pay, you’re essentially financing their business for them. That weighs on yours.
5. Review Cash Flow Weekly
This habit changes everything.
A quick weekly review helps you catch issues while they’re small, instead of waking up one morning and wondering where all the cash went. Not only that, you can also use the data to evaluate your ability to invest in your business, make that hiring decision or buy that new equipment that will help increase your revenue.
Here’s the shift:
Once you stop relying on your bank balance and start using a simple cash flow system, you’ll feel the difference almost immediately. It brings clarity. It brings confidence. And it lowers stress because you’re no longer guessing.
If the thought of building this system feels overwhelming, reach out to your bookkeeper or accountant for help. It will be a game changer for your financial planning and your business.