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Cash Flow & Commission Timing

Why a profitable month can still leave you short on rent, and how to build a forecast and a cushion that catches the gap before it catches you.

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Cash Flow & Commission Timing

Why profitable-on-paper dealers still miss payroll, and how to plan around the carrier commission lag instead of getting surprised by it.

What this Cash Flow & Commission Timing helps you do

A practical walkthrough of the gap between earning commission and actually getting paid for it — why wireless dealers go profitable-on-paper broke, and how to build a rolling forecast and cash cushion that catches the shortfall before it catches you.

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Fast

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Cash Flow & Commission Timing FAQ's

Why can my store show a profit and still not have enough cash to make payroll?

Your income statement books commission as revenue the day you activate a line, using accrual accounting. But the actual cash for that commission often doesn't land for weeks, while inventory invoices and payroll run on their own fixed calendar. You can be genuinely profitable and genuinely cash-short in the same month — that's the earned-vs-received gap.

How long does it typically take to get paid commission after an activation?

It varies by carrier and by your specific master agent agreement, so this guide won't state a fixed number as fact. What's consistent is that there's a real lag, usually measured in weeks after a statement period closes, not days. Confirm your specific payout calendar directly with your carrier or master agent and build your forecast around that number.

How big should my cash cushion be?

A common starting point is 3 to 6 months of fixed costs — rent, base payroll, insurance, loan payments — held in cash or immediately available credit. Lean toward the higher end if you work with multiple carriers or master agents whose payout timing and clawback rules differ, since more moving parts means more room needed to absorb a delay.

What is a rolling cash forecast, and do I really need a spreadsheet to run it?

It's a week-by-week view, typically 13 weeks out, showing your starting cash balance plus expected cash in and cash out, rolling forward to an ending balance each week. A basic spreadsheet is enough — the value comes from updating it weekly against your actual AP and AR, not from the software.

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