Inventory order

Can I afford this next inventory order?

May 29, 20262 min read

You get an inventory email.

The one from your supplier with the updated quote on your next order.

The lead time. The deposit. The new minimum.

You know the email I'm talking about.

You read it twice, then open your bank account in another tab.

And then you make a decision based on what you see in the balance.

Almost everyone does it, but it's creating a problem.

If you have to ask "can I afford this," you're already operating on hope.

I get how this happens.

The supplier comes back with a quote. The lead time matters. The deal looks good.

You check the bank balance, run the math in your head, and place the order.

It happens quick and it works for a while.

When it stops working, it usually stops working fast.

The deposit goes out. The balance comes due. Payroll hits the same week. An ad spend invoice you forgot about lands.

Suddenly an order you thought you could afford is the reason you can't make the next one.

So what do you do then?

Build a cash forecast that models the orderbeforeyou place it.

Then, you can stop asking "can I afford this," and start asking "what does this order do to my cash position for the next 13 weeks."

That's a question that you can actually answer.

And the answer points you toward what to do next: place the order, adjust the timing, negotiate terms, or consider financing.

Trust me, you don't have to build a perfect model to start.

You just need one tab to monitor cash in, cash out, and cash balance, week by week.

Update it every Friday for a month and see what you learn.

If you'd like help building a forecast that actually answers the inventory question, reach out and let's chat about what your next inventory order would look like with a real plan behind it.

Cyndi


Cyndi Thomason is founder and president of bookskeep, a U.S.-based accounting, bookkeeping, and advisory firm for ecommerce sellers worldwide. She has a passion for data analysis and process development. She uses that passion to educate her clients and help them structure their businesses to maximize profits.

Cyndi Thomason

Cyndi Thomason is founder and president of bookskeep, a U.S.-based accounting, bookkeeping, and advisory firm for ecommerce sellers worldwide. She has a passion for data analysis and process development. She uses that passion to educate her clients and help them structure their businesses to maximize profits.

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