Business · FORTUNE
Fortune #08
Good fortune
Future receipts cannot pay today's bills. Map the dates cash arrives against the dates it leaves.
QUOTE CARD
A quote for you
“มูลค่าของเงินนั้นแปรผันตามปริมาณของสิ่งจำเป็นในการดำรงชีวิตที่เงินนั้นสามารถซื้อได้”
— อดัม สมิธ
นักปรัชญาศีลธรรมและนักเศรษฐศาสตร์ชาวสกอต ผู้เขียน The Theory of Moral Sentiments
- Person
- Adam Smith
- Source work
- Chapter II, Part II, Article IV.
- Source text
- The value of money is in proportion to the quantity of the necessaries of life which it will purchase.
STORY & REFLECTION
Orders and the day cash arrives
Guidance-based illustration · Orders and the day cash arrives
Illustrative scene: A gift shop wins a large corporate order and buys all materials at once. Payment is due a month after delivery, while wages and rent arrive first.
She makes a weekly schedule separating booked sales, deposits, and actual cash. She discusses staged delivery with her supplier and payment dates with the customer before accepting more work.
The SBA recommends orderly records of revenue and expenses and using financial statements to understand capital and cash flow. Sales figures are best read alongside actual receipts and payment dates.
A full order book still needs enough cash to cross each week.
Reflection
Sales are not the same as available cash.
A small action today
Map expected cash in and out for four weeks.
A question to reflect on
Which week ahead has more payments due than cash arriving?