Monthly Cash Flow Management Checklist
By Newtown Analytics · · 4 min read
For finance, fp&a & accounting managers
A cash flow management checklist turns good intentions into a repeatable routine. Cash problems rarely arrive without warning; they build up from missed reconciliations, an aging report nobody read and a forecast that was not updated. This page lays out a monthly routine in the order it is usually done: close, reconcile, review, forecast, decide. Adapt it to your business, since a retailer, a manufacturer and a consulting firm will weight the sections differently. It supports the framework in cash flow management.
How to use this checklist
Assign an owner and a due date to each section. Run it on a fixed day each month, shortly after the books close, and keep a copy of each month's completed version so you can see what changed. Between month ends, a shorter weekly routine applies. See how to run a weekly cash review meeting.
The monthly checklist
1. Close and reconcile
| Task | Owner | Done |
|---|---|---|
| Reconcile every bank, card and payment processor account | Accounting | |
| Clear or explain unreconciled items older than 30 days | Accounting | |
| Confirm the month-end cash balance matches the ledger | Accounting | |
| Record accruals and prepayments | Accounting | |
| Confirm payroll and tax deposits were made and recorded | Accounting |
2. Receivables
| Task | Owner | Done |
|---|---|---|
| Run the aging report and review buckets over 30, 60 and 90 days | Finance | |
| Calculate days sales outstanding and compare with target. See days sales outstanding | Finance | |
| Review the top 10 balances and the plan for each | Sales and finance | |
| Review credits, disputes and deductions | Finance | |
| Update credit limits and holds | Finance |
3. Payables
| Task | Owner | Done |
|---|---|---|
| Review the payables aging and upcoming due dates | Accounting | |
| Confirm early-pay discounts taken or missed | Accounting | |
| Review key supplier terms and any upcoming renewals | Procurement | |
| Check that payments follow terms (not early, not late) | Accounting |
4. Inventory and purchases (if applicable)
| Task | Owner | Done |
|---|---|---|
| Review inventory value, days of cover and slow-moving stock | Operations | |
| Check open purchase orders and payment dates | Procurement | |
| Compare the demand plan with purchase commitments | Planning | |
| Decide actions on excess or obsolete items | Operations and finance |
5. Forecast
| Task | Owner | Done |
|---|---|---|
| Update the 13-week forecast with actuals | Finance | |
| Roll the forecast forward one month | Finance | |
| Compare forecast with actuals and record the variance | Finance | |
| Update the 12-month projection | Finance | |
| Run the downside case and note the low point | Finance |
6. Liquidity and financing
| Task | Owner | Done |
|---|---|---|
| Compare cash with the minimum cash level | Finance | |
| Check availability under credit lines | Finance | |
| Calculate covenant ratios and headroom | Finance | |
| Note upcoming debt payments and maturities | Finance |
7. Decisions and reporting
| Task | Owner | Done |
|---|---|---|
| Update the cash dashboard | Finance | |
| Prepare a one-page summary for leadership | Finance | |
| List three actions for the coming month with owners and dates | Leadership | |
| Record decisions made and why | Finance |
Sample monthly summary layout
A one-page summary keeps the review focused.
Cash at month end: $___ vs minimum: $___
13-week low point: $___ in week __
Forecast accuracy (last month): ___%
DSO: ___ days (target ___) DIO: ___ days (target ___)
DPO: ___ days (target ___) Cash conversion cycle: ___ days
Past-due receivables > 60 days: $___
Excess/slow inventory: $___
Covenant headroom: ___
Top three risks: 1. 2. 3.
Top three actions: 1. 2. 3. (owner, date)
Red flags to look for during the review
While you work through the list, watch for signs that something needs attention before the month ends.
| Signal | What it may mean |
|---|---|
| DSO rising for two or more months | Collections slipping or terms drifting |
| Past-due balance growing faster than sales | Credit or follow-up problem |
| Inventory growing faster than sales | Overbuying or slow demand |
| Payables stretched well beyond terms | Supplier tension or a hidden cash shortage |
| Forecast misses in the same direction | A biased assumption |
| Covenant headroom shrinking | Lender conversation needed early |
| Cash below minimum in any forecast week | Action plan needed now |
Adapting the list
- Retailers add open-to-buy, markdown and shrink reviews, and gift card balances.
- Manufacturers add raw material, work in process and finished goods days, and capital spending.
- Service firms add unbilled work, utilization and realization.
- Project businesses add over- and underbilling and retainage.
- SaaS companies add billings, renewals, deferred revenue and churn.
Want a working version?
This page shows the structure only. We do not provide a downloadable file here. If you would like a working version tailored to your business, with formulas and a dashboard layout that fits your systems, contact us. For product companies, the inventory and purchasing section is where the largest cash opportunities usually sit. See demand planning and inventory optimization.
Related guides
Common problems this checklist is designed to catch are described in 9 cash flow management mistakes and how to avoid them.
Keep reading
- Complete guide: Cash Flow Management: The Complete Guide for Growing Businesses
- How to Run a Weekly Cash Review Meeting
- 9 Cash Flow Management Mistakes and How to Avoid Them
- Best Cash Flow Management Software for Small and Mid-Sized Businesses
- Related topic: Demand Planning and Inventory Optimization: The Complete Guide
This article is for general information. It is not accounting, tax, legal or investment advice, and examples use illustrative numbers rather than client data. Confirm decisions that carry financial or legal consequences with a qualified professional.