What CEOs Should Review Before Q3 Decisions

Mid-year is a decision point. You’ve seen what Q1 and Q2 delivered. Now it’s time to check if the business can fund what comes next. That starts with cash flow.
These five checkpoints help you spot gaps, pressure-test plans, and move forward with clarity.

1. Check Timing Alignment

What to Look For:

• Are receivables landing before your major expenses hit?
• Do collections support payroll and supplier timelines?
• Are you relying on credit to float short-term obligations?
  
  

Why It Matters:
Healthy cash flow is about timing. When inflows and outflows are out of sync, growth can create stress instead of momentum.

2. Track Free Cash Flow, Not Just Net Income

What to Look For:

• Are you monitoring cash after expenses and debt payments?
• Have you reviewed how much is actually available to reinvest?
  
  

Why It Matters:
Net income doesn’t show real liquidity. Free cash flow reflects what’s usable now and what needs to be protected.

3. Compare Forecasts to Actuals

What to Look For:

• How close are your revenue and expense projections to reality?
• Are any departments or projects running ahead or behind?
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Why It Matters:
Mid-year is your chance to recalibrate. The sooner you adjust, the stronger your second half can be.

4. Know Your Burn Rate and Runway

What to Look For:

• How much cash do you spend each month to keep operating?
• How many months of runway do you have without new income?
  
  

Why It Matters:
Burn rate shows how fast you’re spending. Runway shows how much time you have to make decisions with stability.

5. Plot Large Expenses Against Cash Flow

What to Look For:

• Do you have upcoming hires, purchases, or major projects?
• Have you mapped those out on a cash forecast?

Why It Matters:
Big moves need preparation. Knowing the impact before you commit protects both cash and confidence.
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Final Thought

Cash flow isn’t just a report. It’s a leadership tool. A clear forecast, aligned timing, and healthy buffer give you room to lead without second-guessing every decision.


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