Planning notes for Kalispell, MT owners, each with invented figures: a four-week restaurant cash flow forecast, a 13-week forecast for a real estate office paid by commission, a weekly repair reserve and a contractor's change-order gap.
How to prepare a cash flow forecast with payroll on the table at a Kalispell, MT sit-down restaurant
- Start with the cash in the bank account today.
- Add expected card and cash deposits week by week, using recent weeks as the guide.
- Subtract each payroll on its actual pay date.
- Subtract food and paper orders on their delivery or due dates.
- Subtract rent, loan payments and other fixed bills when they are due.
- Read down the ending balances for the first week that drops below the cash the kitchen keeps on hand.
Illustration only, invented figures: a Kalispell, MT restaurant starts with $10,640, deposits $23,640 a week, pays $8,735 a week for food and paper, $17,460 for payroll in weeks 2 and 4, and $6,275 in rent in week 1. The invented ending balances run $19,270, $16,715, $31,620 and $29,065, so week 2, a payroll week, is the one to plan around.
13-week cash flow forecast: a Kalispell, MT example built on commission gaps
A 13-week forecast covers one quarter, week by week: short enough to estimate closely and long enough to show a gap coming. For a real estate office paid by commission, gaps come from timing rather than from a lack of sales.
| Week | Commissions in | Payroll out | Rent and fixed bills out | Ending cash |
|---|---|---|---|---|
| 1 | - | - | $3,145 | $8,815 |
| 2 | - | $4,940 | - | $3,875 |
| 3 | $6,975 | - | - | $10,850 |
| 4 | - | $4,940 | - | $5,910 |
| 5 | - | - | $3,145 | $2,765 |
| 6 | - | $4,940 | - | -$2,175 |
| 7 | $9,430 | - | - | $7,255 |
| 8 | $3,860 | $4,940 | - | $6,175 |
| 9 | - | - | $3,145 | $3,030 |
| 10 | - | $4,940 | - | -$1,910 |
| 11 | - | - | - | -$1,910 |
| 12 | $11,265 | $4,940 | - | $4,415 |
| 13 | - | - | $3,145 | $1,270 |
The invented balance goes below zero twice: in week 6, at -$2,175, and in weeks 10 and 11, at -$1,910. A gap that comes back like this fits a line of credit. In this invented case, a $2,500 draw in week 6 is paid back from the week 7 commission, and a $2,000 draw in week 10 from the week 12 commission.
Held 7 and 14 days at 13.27% a year, the two invented draws cost $6.36 and $10.18 in interest.
How can a business improve cash flow? How it plays out with equipment repairs in Flathead County, MT
- Invoice the day a job ends instead of at the end of the month
- Ask for a deposit on large jobs
- Ask suppliers for longer payment terms on regular orders
- Set aside a fixed sum each week for repairs
- Keep a line of credit unused for the bills that cannot wait
Illustration only, invented figures: a Flathead County, MT landscaping crew sets aside $165 a week toward mower repairs. After 14 weeks the invented reserve holds $2,310, enough for a $2,185 deck and spindle repair without a draw.
If that invented repair lands in week 6, with $990 saved, the crew is $1,195 short. An invented line of credit draw for that amount, held 21 days at 13.81% a year, costs $9.49.
Business funding articles for Kalispell, MT contractors weighing change-order gaps
Change orders are additions a customer approves once a contract is already signed. The contractor buys the added materials and pays the crew right away, while the change order is billed with the next progress payment, sometimes weeks later.
Illustration only, invented figures: a change order adds $6,385 of materials and labor, billed 37 days after the crew starts on it. An invented line of credit draw for those days at 12.67% a year costs $82.01, and a draw sized to each change order keeps the cost tied to the work it paid for.
The articles on this page take the same approach to other costs, one cost per article.
By Rainline Capital · Updated