Cash flow how-tos and funding articles written around Jefferson City, MO businesses and the purchases they make.
Building a 13-week cash flow forecast at a Cole County, MO law firm
Thirteen weeks is one quarter, short enough to name each payroll and long enough to show a dip coming; the forecast begins with the balance in the bank this morning. For a law firm the inflows are fees collected from the operating account, never client money held in trust. The table below is an illustration only, with invented figures: a small firm opening the quarter with $42,000, payroll of $14,200 every other week, rent of $5,600 in weeks 1, 5 and 9, and $1,900 a week for software, insurance and supplies.
| Week | Fees collected | Cash out | Ending balance |
|---|---|---|---|
| Week 1 | $9,800 | $7,500 | $44,300 |
| Week 2 | $11,200 | $16,100 | $39,400 |
| Week 3 | $8,600 | $1,900 | $46,100 |
| Week 4 | $12,400 | $16,100 | $42,400 |
| Week 5 | $7,900 | $7,500 | $42,800 |
| Week 6 | $10,300 | $16,100 | $37,000 |
| Week 7 | $13,100 | $1,900 | $48,200 |
| Week 8 | $9,200 | $16,100 | $41,300 |
| Week 9 | $8,800 | $7,500 | $42,600 |
| Week 10 | $11,700 | $16,100 | $38,200 |
| Week 11 | $10,600 | $1,900 | $46,900 |
| Week 12 | $9,400 | $16,100 | $40,200 |
| Week 13 | $12,000 | $1,900 | $50,300 |
In this example the balance bottoms out at $37,000 in week 6, $5,000 below where the quarter began, and ends at $50,300. That dip is the number to plan around: a firm that knows it in week 1 can ask about a line of credit before it is needed.
How a Cole County, MO auto shop can improve cash flow
Cash flow at an auto repair shop moves with the bays: a car that sits waiting for a part is a repair that has not been paid. A few habits can shorten the time between buying a part and collecting for the job.
- Collect at pickup, by card or cash, before the keys go back.
- Send fleet and business-account invoices the day the vehicle leaves, with the repair order attached.
- Order parts against booked jobs, and return unused special-order parts within the supplier’s window.
- Check how many days the card processor takes to deposit sales, and compare it with the payroll calendar.
- Track comebacks; a repeat repair uses bay time that nobody pays for.
When the gap is a tool purchase rather than a timing problem, equipment financing spreads the cost of a lift or scan tool over its working life.
How to prepare a cash flow forecast for a Jefferson City, MO law firm
- Start from the operating account balance today; leave trust and escrow money out.
- List every known payment by its due date: payroll, rent, malpractice premium installments, software, loan payments.
- Estimate fee collections from what has been billed, using how long clients have actually taken to pay.
- Put contingency fees in only when a settlement has a date, and only the firm’s share after it leaves trust.
- Add the weeks together and mark the week with the smallest balance.
- Update the forecast every Friday with what really came in and went out.
A forecast that shows a short gap points to working capital; one that shows a repeating dip around payroll points to a line of credit.
Articles for Jefferson City, MO law offices, clinics, child care centers and trades
Six articles on this blog each follow one Jefferson City, MO business and its purchase:
- Working Capital for a Jefferson City, MO Law Office
- Exam Rooms and EHR Upgrades for Jefferson City, MO Clinics
- A Dental Practice Buy-In in Jefferson City, MO
- Daycare Center Expansion in Jefferson City, MO
- HVAC and Plumbing Crews Between Jobs in Jefferson City, MO
- Service Vans and Tools for Jefferson City, MO Trades
Restaurants and landscapers, named in the title of this page, have their own pages on restaurant funding and landscaping funding; the cash forecast and shop habits above apply to them as well.
By Lodgeglen Finance · Updated