Salaries, EMIs and tax dues fall on the same week
Place payroll, EMI, tax and rent dates on one four-week calendar. Use what you find to change the way this work is handled this week.
This is one cause behind related problems such as Working capital is always short. Fixed outflows bunch up around the 7th to the 15th with no plan. The checks below concentrate on this cause rather than repeating the full symptom diagnosis. The accountant with the owner usually hears about this through a phone call or a last-minute request. Fixed outflows bunch up around the 7th to the 15th with no plan. A usable fix starts with evidence and one person accountable for the next decision.
What it looks like
- The accountant with the owner has to search the bank statement, supplier ledger and payment calendar before answering a routine question.
- Fixed outflows bunch up around the 7th to the 15th with no plan.
- Staff cannot locate cleared bank transactions, approved bills and due dates for the latest case.
- People spot the gap after a routine payment crowds out wages, statutory obligations or essential supply.
- The open case has no documented owner, due date or proof of closure.
Why it happens
The specific failure is left unchecked. Fixed outflows bunch up around the 7th to the 15th with no plan. If there is no recorded owner for that condition, the effect travels to the next team.
The work and its evidence move separately. Payment decisions may be made from today’s bank balance without the next set of committed outflows.
A later hand-off exposes the gap. A supplier invoice, approval and due date can remain in different records until an urgent payment request arrives.
The less obvious cause: A control may exist on paper but still fail in practice. Test whether someone actually performs this check: compare bank balances and confirmed receipts against each due week.
Find the first failed hand-off before changing staff targets. A completed register alone cannot prove that physical work happened.
What to check first
- Place payroll, EMI, tax and rent dates on one four-week calendar. Compare dates, quantities and references. Mark an unconfirmed difference as unverified. Finish the first pass in under 30 minutes and name the missing source if needed.
- Compare bank balances and confirmed receipts against each due week. Record the affected item or party and the person who can verify the detail. Finish the first pass in under 30 minutes and name the missing source if needed.
- Find avoidable discretionary spends booked in the peak-payment week. Mark each exception open, waiting for evidence or resolved, with a named next owner. Finish the first pass in under 30 minutes and name the missing source if needed.
How to fix it
- Start with one live case. Place payroll, EMI, tax and rent dates on one four-week calendar. Keep the source reference before changing the record.
- Make the control explicit. Build a cash priority calendar for fixed obligations. Put the rule in the register or sheet that staff already use.
- Set a second guardrail. Confirm statutory payment dates with the current portal and CA. Keep an actual bank balance separate from likely receipts. Check tax and legal priorities with a qualified adviser.
- Assign the next decision. The accountant with the owner records the action and its due date. A separately authorised person signs off changes affecting money, safety or customer terms.
- Review the open list. Start with items affecting today or tomorrow. Keep third-party commitments separate from completed actions.
- Check whether the rule holds. For four weeks, count committed outflows unsupported by confirmed available cash. Reopen repeat cases and identify where the control failed.
Copy this cash and supplier payment priority sheet into a register or sheet:
| Reference / item | What went wrong | Evidence checked | Action owner | Promised date | Status / decision |
|---|---|---|---|---|---|
| P096 (example) | payments clash same week | Place payroll, EMI, tax and rent dates on one four-week calendar | Accountant with the owner | Set at review | Open |
Retain the source reference and limit access to authorised staff.
A worked example
Illustrative example only. An illustrative week brings ₹4.2 lakh salary, ₹1.3 lakh EMI and ₹90,000 tax dues. Start by locating the source that would verify these amounts or quantities. The accountant with the owner records the exact exception, gives it an owner and checks the next relevant event. This example shows how to structure the decision. It does not claim that a business achieved a saving or avoided a loss.
How you know it is fixed
- Completeness: Count committed outflows unsupported by confirmed available cash at the same time every week. Record the count and the oldest item, rather than just saying things are better.
- Timeliness: Check whether the assigned person took the next action before the agreed cut-off. Keep missed dates visible instead of replacing them silently.
- Proof of closure: Sample three closed cases and locate cleared bank transactions, approved bills and due dates. A tick without supporting evidence is still an open control gap.
When it is more serious
A possible statutory default or unpaid wages requires early escalation. Hold irreversible decisions until the material facts are verified. For contracts, tax, wages or legal rights, retain source documents and consult a qualified adviser. Repeated exceptions after four reviews may require changing the control. Check the current rule on the relevant official portal or with your CA or adviser. Rules change.
This works if someone does it every day. In most businesses, that someone is you.
Questions people ask
What should we check before taking action?
Place payroll, EMI, tax and rent dates on one four-week calendar. Keep its date and reference. Then compare it with cleared bank transactions, approved bills and due dates; if they disagree, record the difference before changing either one.
Who should own the next action?
The accountant with the owner should own the open item. The person authorised to change money, a technical standard or a customer commitment must still approve that decision.
Can we run this control without new software?
No. Start with a shared sheet or register containing the reference, owner, promised date, status and evidence. Once those fields are reliable, decide whether a system connection is worth setting up.
When is the issue serious enough to escalate?
A possible statutory default or unpaid wages requires early escalation. Keep supporting records and get specialist help where relevant.