It’s Monday morning. First move: log into the bank and confirm beginning-of-day cash. Last Friday’s closing balance must reconcile to Monday’s opening number. No assumptions.
While reviewing cleared items, I notice a large outstanding check. That check stays in the weekly model — payroll coverage depends on it.
Mondays are usually strong deposit days. This one isn’t.
I call the VP of Revenue Cycle Management. The issue surfaces quickly: an invoicing glitch from weeks ago caused underbilling. The correction is in process — but collections won’t rebound until next week.
The timing creates a $200K–$300K payroll gap.
We re-forecast collections for the week. Then we move into action:
- Identify customers with large pending orders
- Cross-reference aging reports
- Offer cash-payment incentives
- Coordinate accelerated A/R follow-up
It helps — but doesn’t fully close the gap.
Next lever: vendor timing.
We tier suppliers based on operational impact and identify payments that can safely shift seven days. Inventory is rebalanced across locations to protect operations. Vendors are notified proactively — and the communication is well received.
Finally, we structure certain Friday payments as checks, knowing they won’t clear until the following week when collections rebound.
Everything goes into the daily cash model.
Payroll processes Wednesday. We build in an additional $25K buffer for commission fluctuation.
By the end of the discussion, the owners aren’t stressed.
We didn’t “hope” payroll would clear. We engineered the week.
Key Takeaways
- What to Pay: Protect payroll first. Vendor payments are prioritized by operational impact.
- When to Pay It: Shift non-critical payments into the following week to bridge timing gaps.
- How to Pay It: Use timing tools strategically — accelerated collections, check clearing float, and proactive vendor communication.
