Profit and cash are not the same. A profitable business can still struggle to pay suppliers, employees or taxes when collections and payments occur at different times.

What to focus on

Build a rolling forecast that begins with the actual bank position and projects expected receipts and payments by week or month. Separate committed amounts from estimates and record the assumptions behind major figures.

Focus on timing. Review customer payment patterns, supplier terms, payroll dates, loan instalments, taxes and planned capital expenditure. Create a base case as well as cautious scenarios for delayed sales or unexpected costs.

Update the forecast with actual results and investigate material differences. Used consistently, it becomes an early-warning system and a practical basis for collection priorities, spending decisions and financing discussions.

How Bryad & Associates can help

We provide practical accounting, tax and business advisory support tailored to Kenyan organisations. Contact us to discuss your circumstances and the most appropriate next step.

This article provides general information and should not be treated as advice for a specific situation. Requirements may change; confirm current obligations with the relevant authority or a professional adviser.