Cash Flow Management Tips for Small Business
Practical strategies to optimise cash flow and grow sustainably
1300 103 210Book a 15-minute chat with our team. No obligation.
Cash flow problems kill more businesses than lack of profitability. You can be profitable on paper but still fail if you can't pay bills when they're due. Effective cash flow management is the difference between sustainable growth and crisis management.
Essential Cash Flow Management Strategies
1. Accelerate Receivables
Getting paid faster dramatically improves cash flow. The sooner invoices are paid, the less you need to rely on credit facilities or reserves.
Proven Tactics:
- Invoice immediately upon completion
- Offer early payment discounts (2% for 7 days)
- Make payment easy (multiple methods, online portal)
- Follow up overdue invoices within 3 days
2. Manage Payment Timing Strategically
Pay suppliers on time to maintain relationships, but don't pay early unless incentivised. Use the full payment terms available to optimise cash retention.
3. Forecast Cash Flow Weekly
Create rolling 13-week cash flow forecasts updated weekly. This visibility allows you to anticipate shortfalls weeks in advance and take corrective action before crisis hits.
4. Maintain Cash Reserves
Aim for 3-6 months of operating expenses in cash reserves. This buffer protects against unexpected downturns and gives you confidence to invest in growth opportunities.
Master Your Cash Flow
Accountee provides expert cash flow forecasting and management support. We help you stay ahead of cash flow challenges and grow sustainably.