A cash forecast warns when its assumptions produce a negative month-end cash balance. The warning identifies a planning result that needs review. It does not prove that a bank account is currently overdrawn or that a payment has already failed.
Open the exact monthly table and locate the first negative closing amount. Review the opening balance, receipts and payments for that month, then trace the assumptions that caused the change. Check whether amounts repeat unexpectedly or whether receipts and payments were placed in the wrong periods.
Confirm the posted baseline separately, including reconciliation and opening evidence. If the assumptions are valid, keep the negative result visible while evaluating the operational choices with the appropriate decision-maker. Do not remove an expected payment solely to make the chart appear positive.
Use a separate scenario to examine alternative timing or funding assumptions. Give it an explicit reason and retain the original version so the comparison remains understandable. A changed projection should explain which assumptions changed, not imply that the underlying cash problem has been resolved.
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