Most SMEs die of cash starvation, not lack of profit. A 4-week rolling forecast is your seat-belt.
The model
Opening cash + expected inflows (sales, receivables) − expected outflows (payables, salary, rent, GST) = closing cash. Update weekly.
Inflows: be pessimistic
Take last 8 weeks' average daily sales, cut by 10% for safety. Add expected receivables based on ageing (0-30 collect 85%, 30-60 collect 60%, 60+ collect 30%).
Outflows: be brutal
Add every payable due, GST payment (20th), salary (5th), rent (1st), utilities. Add a 5% buffer for surprises.
SaathiX ERP Cash Flow module auto-builds this every Monday from your ledger.