Original editorial explainer / comment. A profitable invoice can still be a liquidity problem.
The context
Sales and cash are not interchangeable. A business may recognise a completed order months before the customer pays, while wages, rent and suppliers still require settlement.
Our analysis
A rolling forecast should track when cash actually moves, not merely when revenue is booked. That distinction helps owners set realistic payment terms, decide when stock should be ordered and determine whether short-term finance is warranted.
What to watch
Use weekly forecasts for near-term decisions and stress-test them against slower collections. This is general financial education, not individual investment advice.
Editorial note: This is an original explainer, not a report of a newly investigated incident. It should not be read as a finding about any particular person or company.
We assess factual corrections and substantive responses. Verified changes are reflected in our reporting.
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