Stop sweating month-end statements—start predicting cash weeks in advance with numbers you can control today.
The Day the Bank Called—and the CFO Slept Anyway
Andrea’s precision-machining company looked profitable on paper. The P&L showed a healthy 14 percent EBITDA, and the bookkeeper’s Excel forecast suggested plenty of room for a new five-axis mill. Then, a supplier tightened terms to “cash on delivery,” a key customer paid 23 days late, and the bank balance cratered—three days before payroll. Andrea wired funds from her personal line of credit, slept two hours, and vowed she would never fly blind again.
Her EOS Implementer proposed a counter-intuitive fix: stop relying on lagging statements and install a weekly Cash Scorecard built on leading indicators the team could influence within seven days. They chose four:
| Metric | Owner | Weekly Green Goal |
| Orders Booked (weighted) | VP Sales | ≥ $180 k |
| Labor Hours Scheduled vs. Capacity | Ops Manager | 95%–105% |
| Invoices Sent | Controller | ≥ $150 k |
| Cash-on-Hand Runway (weeks) | CFO | ≥ 4 |
Three months later, Andrea’s team predicted cash a full 21 days out, avoided a $400k crunch by throttling overtime early and funded the new mill from operations—no midnight transfers required. The difference wasn’t magic financing; it was leading indicators that lit the runway before the plane ran out of pavement.
Why Your P&L Lies to You
Traditional financial statements are rear-view mirrors. By the time a monthly P&L arrives:
- Last month’s frantic overtime is already baked into labor costs.
- That large, 45-day-terms customer shipment is counted as revenue—even though cash hasn’t hit the bank.
- You discover gross margin erosion after material prices spiked.
Good information—just too late. EOS calls this the results-only blind spot: focusing on outcomes you can’t fix until the crash report prints. If you want to dodge the ditch, you need numbers that predict the skid while traction is still recoverable.
Anatomy of a Cash-Focused Scorecard
A solid Cash Scorecard sits on a single page, refreshes weekly, and takes <30 minutes to compile. Build it around five activity-based categories, each with an owner and a clear red/green target.
1. Sales Pipeline Velocity
- Quotes Out – raw count of proposals delivered.
- Weighted Pipeline – value × probability in the next 30 days.
- Close Rate – rolling four-week percentage.
Sales controls these; if the pipeline sags, they add outbound calls or campaigns this week.
2. Production Capacity vs. Bookings
- Labor Hours Scheduled ÷ Available – keeps capacity in the Goldilocks zone.
- Machine Utilization – for capital-intense shops.
Red here triggers overtime pre-approval or subcontract options before delivery dates slip.
3. Billing Speed
- Days From Delivery to Invoice Sent – measure in hours if possible.
- % Invoices Sent Within 48 hrs – green goal often 95 percent.
Billing is pure controllable activity; slow invoices equal voluntary cash strangulation.
4. Collection Cadence
- Cash In vs. Cash Out This Week – simple, visceral.
- A/R Aging Over 45 Days – track dollars or percentage.
When dollars turn red, the Controller calls top past-due accounts on Tuesday morning, not two weeks later.
5. Runway Metric
- Operating-Expense Weeks in Bank – cash ÷ average weekly outflow.
The CFO owns this “gas gauge.” If runway dips below four weeks, discretionary spend pauses until green returns.
Keep the entire Scorecard to 5–15 lines—more breeds noise; fewer hides blind spots. Post it where everyone can see it, not buried in accounting software.
Converting Lagging Lines Into Leading Predictors
You don’t abandon the P&L; you translate each significant expense or revenue line into one leading activity the team can move this week.
| P&L Line | Leading Indicator | Seat Owner |
| Revenue | Quotes Out (weighted value) | VP Sales |
| Cost of Goods Sold | Purchase Orders Placed vs. Forecast | Supply-Chain Lead |
| Direct Labor | Hours Scheduled vs. Capacity | Ops Manager |
| Overhead | Unscheduled Overtime Hours | Plant Supervisor |
| Accounts Receivable | Invoices Sent + Calls on 45-Day Accounts | Controller |
Every financial driver has a weekly activity, one owner, and a light that flashes red early enough to steer.
AI Assist: Draft Your Cash Early-Warning Dashboard
Need inspiration? Fire up ChatGPT and paste:
Prompt: “Act as a fractional CFO for a [industry] firm with annual revenue [X] and headcount [Y]. Recommend five weekly, leading indicators that predict cash 30 days out. For each, specify ‘Why It Predicts Cash,’ the data source, and the ideal seat owner.”
The model will spit out ideas, often reminding you of levers you forgot, like “refund requests” or “inventory turns.” Compare the list to reality, keep what fits, and scrap what doesn’t.
Automation Hacks: From Spreadsheet to Same-Day Insight
QuickBooks Online + Zapier: Auto-export invoices and payments nightly to Google Sheets, populating “Invoices Sent” and “Cash In.”
HubSpot or Salesforce Triggers: When a deal moves to “Closed–Won,” zap it into the Scorecard as “Order Booked” with weighted value.
Rolling 13-Week Google Sheet: One tab pulls historic bank balances; another projects collections and disbursements. Conditional formatting keeps runway cells red or green.
All-in setup time: a Saturday afternoon. Weekly update time: 20 minutes. ROI: your next stress-free payroll.
Coaching Moments: Turning a Red Cash Metric Green
A Scorecard turns red numbers into neon arrows. When “Collections < $125 k” flashes:
- Identify – Controller notes which accounts rolled past terms.
- Discuss – Leadership IDS®s options: quick-pay discount, priority calls, suspend new credit.
- Solve – Assign to-dos due by next Monday.
If “Invoices Sent” stays red for three weeks straight, the Controller and CFO might schedule a one-on-one. EOS does not mandate weekly one-on-ones, but they’re powerful when necessary. Tone matters:
“Invoices lagging hurts everyone’s bonuses. What’s blocking you—capacity, clarity, or tools—and how can I clear it?”
Because the metric is objective and pre-agreed, coaching feels supportive, not punitive.
Real-World Proof: Cash Predictability in Action
- Custom Cabinet Maker: Shifted from “revenue recognized” to “deposits collected” as a pipeline metric and shaved WIP cash swings by $180k.
- B2B SaaS Startup: Tracked “Days Sales Outstanding” weekly; red numbers triggered automated dunning emails. DSO fell from 54 to 31 days, freeing $620k in working capital.
- Commercial HVAC Contractor: Added “Work Orders Pre-Billed ≥ 95 percent” to the Ops Scorecard. Collection lag shrank so dramatically that they negotiated early-pay discounts from vendors instead of to customers.
Across industries, the pattern repeats: lead with activities you control, and cash stops surprising you.
Common Pitfalls (and How to Dodge Them)
| Pitfall | Symptom | Fix |
| Vanity Metrics | Profit % looks great, bank empty | Track deposits collected, not booked revenue |
| Data Lag | Metrics update days late | Automate feeds or use proxy stats you can pull instantly |
| Shared Ownership | Collections metric owned by “Accounting Dept.” | Assign to a single seat—Controller or AR Clerk |
| Goal Drift | Targets change mid-quarter | Lock goals for 13 weeks; adjust only in quarterly planning |
| Red Without Action | Same metric red three weeks | IDS immediately; if pattern persists, one-on-one coaching |
Your 7-Day Sprint to Cash Clarity
- Block one hour with your finance and ops leaders.
- Choose 4–6 activities that predict cash 30 days out.
- Assign one owner and a green/red target to each.
- Automate the Scorecard—Zapier, Google Sheets, whatever’s handy.
- Review next Monday in your Level 10 Meeting; spend <10 minutes on cash.
- Drop red numbers into the Issues list and IDS on the spot.
- Celebrate the first all-green week—then raise the bar or add a new metric next quarter.
Repeat this rhythm for 13 weeks. You’ll feel the stress dial turn down and the confidence dial snap forward.
Bottom Line
Cash catastrophes rarely come from a lack of profit—they come from a lack of visibility. Shift your focus from lagging statements to the leading actions that create cash, and you’ll steer problems while they’re still molehills, not mountains. When sales, ops, and finance each own a green/red indicator they can influence this week, you gain calm control, fund growth internally, and sleep like a CFO who already knows next month’s balance.
Ready to begin? Download the free 90-Day Scorecard Template and plug in your cash metrics today. Predict your runway—then extend it.
