Can I make payroll this month?

Bottomline compares your current cash position against your payroll obligation and gives you a clear yes or no with the math behind it.

How many months of runway do I have if revenue drops to zero?

Bottomline divides your current cash by your average monthly burn rate and tells you exactly how long you could survive with no income.

Am I one bad month away from trouble?

Bottomline stress-tests your finances against realistic downside scenarios and tells you how thin your margin of safety really is.

If my biggest customer leaves, what happens to my margin?

Bottomline calculates what your revenue, margin, and cash position would look like without your largest customer so you can plan before it happens.

How many months of runway if revenue drops by 25%?

Bottomline recalculates your burn rate at 75% revenue and shows you exactly how many months of cash you would have left.

Can I make payroll next month?

This month is covered. But what about next month? Projecting cash 30 days forward is harder than checking today's balance. Here is how to do it yourself, and a faster way to get the answer automatically.

7 min read

The short answer

Can you cover payroll next month?Start with today's cash balance. Add expected incoming payments (receivables due in the next 30 days). Subtract all expected outflows: payroll, rent, vendor bills, loan payments, and recurring subscriptions. If the result is positive, you can make it. If it is negative or tight, you need to act now.

Why projecting payroll 30 days out changes everything

Checking payroll for this month is a snapshot. Projecting for next month is a forecast. The difference matters because a snapshot tells you if you have a problem right now. A forecast gives you time to do something about it.

If you find out today that next month is going to be tight, you have 30 days to chase outstanding invoices, delay a vendor payment, line up a credit facility, or close a deal that is sitting in your pipeline. If you find out the day before payroll, your only option is panic.

The challenge is that projecting cash forward requires combining numbers from multiple reports. Your accounting software does not have a “can I make payroll next month” button. You need to build the picture yourself.

The forward-looking payroll calculation

This is a basic cash flow projection focused on one question: will there be enough cash when payroll runs?

Projected cash at payroll date =
Current cash balance
+ Receivables expected before payroll date
- All expenses due before payroll date (including payroll)
Example: $48,000 cash + $22,000 receivables - $62,000 outflows = $8,000 remaining

The tricky part is estimating receivables. Just because an invoice is due does not mean it will be paid on time. If you are counting on a $15,000 payment from a customer who usually pays 10 days late, your projection is optimistic.

How to project next month's payroll coverage in QuickBooks Online

You need three reports and a spreadsheet to pull this together.

1
Get your current cash balance
Go to Reports→ search for “Balance Sheet.” Set the date to today. Note “Total Bank Accounts” under Current Assets. This is your starting cash.
2
Estimate incoming cash
Go to Reports→ “Accounts Receivable Aging Summary.” Look at the “Current” and “1-30” day columns. These are invoices likely to be paid in the next 30 days. Be conservative: discount by 10-20% for late payments.
3
Get next month's payroll number
Go to Reports→ “Payroll Summary.” Look at the current month as a proxy for next month. Unless you are adding or losing staff, the number will be similar. Add employer taxes and contributions.
4
Add other outflows
Go to Reports→ “Accounts Payable Aging Summary” for vendor bills. Add rent, loan payments, and any known one-time expenses (quarterly taxes, insurance renewals, equipment). Write these down in a spreadsheet.
5
Run the projection
Cash + expected receivables - payroll - other outflows = your projected cash after payroll. If positive, you are covered. If negative, you need to close the gap now while you have time.

Total time: 15-20 minutes plus a spreadsheet. The receivables estimate is the weakest link. You are guessing which customers will pay on time.

How to project next month's payroll coverage in Xero

Same approach, Xero reports. The numbers live in slightly different places.

1
Get your cash balance
Go to Accounting → Reports→ “Balance Sheet.” Find “Bank” under Current Assets.
2
Check receivables
Go to Accounting → Reports→ “Aged Receivables.” Focus on the Current and 1-30 day columns. These are your expected inflows over the next month.
3
Get payroll from pay runs
Go to Payroll → Pay Runs. Use the current month's total as your estimate for next month. Xero shows the employer cost per pay run clearly.
4
Factor in payables and fixed costs
Go to Accounting → Reports→ “Aged Payables” for vendor obligations. Add rent, loans, and recurring costs. Build your simple projection in a spreadsheet.

Total time: 15-20 minutes plus spreadsheet work. Xero's Short Term Cash Flow report can help, but it still does not answer the payroll question directly.

Why forward-looking payroll checks rarely happen

Projecting cash forward is harder than checking a balance. Here is why most business owners skip it:

You need to combine 3-4 reports into one picture. Balance Sheet, AR Aging, AP Aging, and Payroll Summary. None of them connect to each other automatically.
Receivables are a guess. You are projecting which customers will pay on time. If your biggest customer is 10 days late, your entire forecast breaks.
It is easy to forget one-time costs. Quarterly tax payments, annual insurance renewals, and equipment purchases do not show up in your recurring expense patterns. They ambush you.

Or get next month's payroll answer automatically

Bottomline connects to your accounting software and projects your cash position 30 days forward every month. It factors in your current cash, expected receivables (adjusted for each customer's actual payment history), upcoming payroll, and all known obligations.

Next month payroll projection

Tight. You can make payroll, but just barely.

Projected cash at payroll date: $36,200|Payroll due: $32,400|Remaining after payroll: $3,800

From a real Bottomline report. The projection accounts for receivables, payables, and recurring costs.

When the projection is tight, Bottomline also shows you the receivables it is counting on and whether those customers have a history of paying late. That way you know which invoices to chase before the crunch hits.