There’s one conversation I have with almost every new client. How do you track your inventory cash flow? The answer is almost always: I just watch the balance and order when I think I have enough money.

That approach works until it doesn’t. And when it stops working, it stops working fast.

The fix is a dedicated inventory account. Every time revenue comes in, a percentage goes directly into that account before anything else. That account funds your next order. You never touch it for operating expenses, ads, or payroll.

How much should go in? Start with your average inventory spend as a percentage of revenue. If you typically spend 30% of revenue on inventory, transfer 30% into that account on every disbursement cycle.

Over time, this account builds a buffer. You stop scrambling before every reorder. You stop making inventory decisions based on a bank balance that includes money already earmarked for other things.

It’s a simple habit. But it’s the difference between reactive and planned inventory management.