How do I keep track of cash flow for inventory?

There's one conversation I have with almost every new client.

I ask how they manage inventory orders.

The answer is almost always some version of "I just watch the balance and order when I think I have enough money."

That feels manageable - until an order is due and the cash isn't there.

In ecommerce, inventory is the single biggest cash flow killer.

Managing it by gut feel means you're one bad timing decision away from scrambling.

So here's what I tell clients to do instead.

Open a dedicated Inventory account.

Every time a payout lands from Amazon or Shopify, move a set percentage directly into that account before you spend anything else.

If your cost of goods runs about 30% of revenue, move 30% of every payout into that account.

It sits there until you need to place an order.

You're not scrambling when the invoice arrives.

The money is already there because you set it aside the moment revenue came in.

You're pre-funding your next order with the revenue from your current sales.

When we build a cash forecast for clients, we take it further by mapping out exactly when each order is due and how those payments line up against expected revenue.

Inventory stops being a surprise and starts being a planned expense.

That shift alone changes everything.

If you'd like help setting this up, schedule a call and we'll walk through it together.

Or start with our Ecommerce Business Performance Assessment to see where your cash management stands today.

Cyndi