How to work out how much cash your business actually has left

To work out how much cash your business actually has left, start with the cleared bank balance. Add only income due to clear within your chosen period. Then subtract supplier bills, payroll, rent, tax set-asides and other payments due in that period. Keep a minimum buffer separate. The result is usable cash.

Your bank app answers how much is in the account now, but it does not show what already belongs to Friday's wage run, next week's suppliers or HMRC. In the worked example below, the account holds £11,680, yet £10,120 is already committed. Only £1,560 is free before more money arrives, so the bank balance overstates usable cash by 87%.

Your bank balance becomes useful only after every commitment has a date

Choose the date you need to reach. For a quick weekly check, that might be next Monday, the next payroll date or the VAT deadline. Cash left = cleared bank balance + reliable receipts due before the review date − payments due before that date − minimum cash buffer.

The British Business Bank's cash-flow guidance follows the same timing rule: income belongs in the period when cash reaches the bank, and outgoings belong in the period when they will be paid.

1. Record the cleared balance across the accounts used for trading.
2. Add receipts with a known settlement date before your review date.
3. List every approved supplier invoice due in that period.
4. Add payroll, rent, loan payments, subscriptions and direct debits.
5. Reserve tax that is due or already collected for HMRC.
6. Subtract a minimum buffer that you will not spend.

Use cleared cash, not the balance including pending card transactions. Treat uncertain sales as a forecast, not money available today.

Invoice due dates reveal cash that the bank balance hides

Supplier bills often create the biggest blind spot because the goods have arrived, but the payment has not left the account. A healthy Monday balance can therefore hide a crowded Friday payment run. Start with approved invoices, then verify the supplier, total and due date before adding each one.

Involiqo places Cash Left and Bills Due beside invoice data. You can review extracted supplier details, totals, dates and line items before saving, which makes the cash figure traceable to the bills behind it. Invoice detail can also explain why the total moved, so compare the underlying items when this week’s commitments rise.

A £11,680 balance leaves Riverside Café only £1,560 to use

The figures below are illustrative. Riverside Café reviews cash at 8am on Monday because the owner needs to know what is free before the following Monday.

1. The cleared bank balance on Monday is £11,680.
2. The Metro Meats invoice due Wednesday is £1,488.
3. Fresh Produce Co invoices due Friday total £2,612.
4. The net wage run due Friday is £3,180.
5. Rent and direct debits due by Monday total £840.
6. The VAT set-aside for the period is £2,000.
7. Cash left before new receipts is £1,560.

The card processor is also due to settle £1,940 on Tuesday. If that payment clears, projected cash becomes £3,500. Until it lands, the safer number remains £1,560.

• Usable now: £1,560. This is based on cleared money.
• Projected after confirmed settlement: £3,500. This depends on the £1,940 receipt arriving.

The owner can now judge a new stock order against £1,560, not £11,680.

Four common shortcuts make available cash look too high

• Counting expected sales before they settle. A busy Tuesday is not cash until the card processor pays, so keep forecast takings in a separate line.
• Forgetting tax set-asides. Avoid spending money reserved for tax; VAT-registered businesses should verify the exact figure and deadline in their accounts.
• Using invoice dates instead of payment dates. Cash flow follows the day money moves, so an invoice raised last month can still reduce next week’s cash.
• Counting the same bill twice. Match the supplier invoice, direct debit and bank schedule before subtracting it.

A ten-minute Monday review keeps the number current

1. Reconcile the cleared bank balance.
2. Confirm receipts that settled since the last review.
3. Approve new invoices and check their due dates.
4. Review payroll, rent, tax and direct debits.
5. Recalculate cash left through the chosen date.
6. Record one action, its owner and its deadline.

Move the review earlier if the number turns negative, then check which payment lands first, which bill is due first and where a supplier conversation is needed. Do not wait for the bank balance to fall before examining the dates.

Frequently asked questions

How far ahead should you calculate cash left?

For an operating decision, calculate to the next pressure date, often seven to 14 days, the next payroll run or a large supplier payment. Keep a separate 13-week forecast for wider planning: the short view informs today's decision, while the longer view shows where the next squeeze could form.

Should VAT always be subtracted from cash available?

Set aside the VAT you expect to owe, based on your records and accounting scheme, because not every pound collected will be paid to HMRC. Most VAT returns are quarterly, and the usual online filing and payment deadline is one calendar month and seven days after the period ends. Confirm your date through GOV.UK.

Does an overdraft count as cash left?

Show unused overdraft headroom on a separate line because it is access to borrowed funds, not cash the business owns. This stops a positive display from hiding new debt; a negative cash-left figure still needs an action and a date.

Key takeaways

• Cash left is the cleared balance plus reliable receipts, minus dated commitments and a protected buffer.
• Approved invoice due dates expose cash pressure that the bank balance cannot show.
• Keep cleared cash and projected cash as two separate figures.
• Refresh the number every week and assign an owner and deadline to the next action.

Cash left is a dated decision number, not an account balance

A useful cash-left figure always answers, “How much is free through this date?” Start with cleared cash, add only reliable receipts, subtract every dated commitment and keep a buffer apart. Then trace the total back to invoices and payment dates.

Sources

• British Business Bank: How to create a cash-flow forecast in four steps — https://www.british-business-bank.co.uk/business-guidance/guidance-articles/finance/how-to-create-a-cash-flow-forecast-in-4-steps
• Business.gov.uk: Understanding business taxes — https://www.business.gov.uk/support/business-tax-and-reporting/understanding-business-taxes/
• GOV.UK: When to do a VAT return — https://www.gov.uk/submit-vat-return/when-to-do-a-vat-return
• Involiqo: Supplier invoice approval checklist — https://involiqo.com/blog/supplier-invoice-approval-checklist
• Involiqo: Spot supplier price increases in invoice data — https://involiqo.com/blog/spot-supplier-price-increases-invoice-data