Model a cash commitment and record the decision
Show which dated obligations a proposal affects before an authorised person decides.
- Preparation
- One scenario review before commitment.
- Difficulty
- Advanced
- Task
- Review a cash commitment
Before you start
Get what you need before you start
- Bring the checked cash view, payment schedule, contract terms, and decision owner.
- Arrange accountant review for material commitments and legal review for contract changes.
Steps
Work through the method
Use the listed inputs and tools. Check the evidence when you need to verify a step.
Create a separate scenario
Copy the current cash view, label the proposal, and preserve the original assumptions and review date.
Why it matters: A separate scenario protects the current operating view.
- Input
- The current checked cash view and proposed commitment.
- Output
- A dated scenario linked to its baseline.
Tools in this stepEvidence for this step
The Australian Government method starts with opening cash, records incoming and outgoing cash, and calculates closing cash while identifying estimates.
Australian Government business.gov.au: “Completing your cash flow statement”; “Opening balance”, “Cash incoming”, “Cash outgoing”, and “Closing balance” sections, accessed 26 September 2026.
Add payment dates and affected obligations
Add each proposed payment on its contract date. Compare the lowest projected cash point and name every obligation the proposal could affect.
Why it matters: The decision depends on timing and existing obligations rather than current revenue alone.
- Input
- The scenario, contract schedule, and current obligations.
- Output
- A scenario with affected dates, obligations, and assumptions.
Tools in this stepQuickBooks OnlineEvidence for this step
The Australian Government method starts with opening cash, records incoming and outgoing cash, and calculates closing cash while identifying estimates.
Australian Government business.gov.au: “Completing your cash flow statement”; “Opening balance”, “Cash incoming”, “Cash outgoing”, and “Closing balance” sections, accessed 26 September 2026.QuickBooks Online supports scheduled, reminder, and unscheduled recurring transaction templates, and saves recurring invoices as drafts for review and finalisation.
Intuit QuickBooks Support: US edition, updated 5 August 2026; “Create a new recurring transaction from scratch”, including template types and the recurring-invoice draft note.
Record the reviewed decision
Ask the authorised owner to choose proceed, delay, reduce, or decline. Record the evidence, professional reviews, owner, and revisit date.
Why it matters: The record separates an approved decision from a modelled possibility.
- Input
- The completed scenario and specialist reviews.
- Output
- An authorised decision with conditions and a revisit date.
Tools in this stepQuickBooks OnlineEvidence for this step
QuickBooks Online supports scheduled, reminder, and unscheduled recurring transaction templates, and saves recurring invoices as drafts for review and finalisation.
Intuit QuickBooks Support: US edition, updated 5 August 2026; “Create a new recurring transaction from scratch”, including template types and the recurring-invoice draft note.
Success checks
Check the result before you finish
- The scenario preserves the original cash view.
- Payment dates and affected obligations are explicit.
- An authorised person recorded one decision and its conditions.
Failure modes
Watch for these problems
- A recurring template becomes approval. Keep it as a visibility aid.
- A contract exit is assumed. Obtain legal review.
- A material commitment lacks accountant review. Pause the decision.
Tools
Choose the tools you need
Tool
QuickBooks Online
An accounting workspace for receivables reports, invoices, receipt review, reconciliation, exports, recurring templates, and limited user roles.
Check fit, limits and pricingSources
Read the sources behind this practice
Check what each source supports and where the advice has limits.
- Reddit r/smallbusiness: Cash flow almost broke me even when business was goodFirst-hand small-business operator account · Publication date unavailable
- Reddit r/smallbusiness: I don't know if I can handle the anxiety of running a small businessFirst-hand small-business operator account · Publication date unavailable
- Australian Government business.gov.au: Set up a cash flow statementGovernment method guidance · Publication date unavailable
- Intuit QuickBooks Support: Create recurring invoices and other transactionsOfficial product documentation · Publication date unavailable