4 simple secrets to controlling your small business cash flow

Keeping on top of cash flow is one of the most important things small business owners do.

By Henry Brown

Running your small business feels like a rollercoaster ride at times. There are those incredibly high moments where you can feel yourself climbing to euphoria. The sales are coming in, the business is booming, but then there is that peak and the only way can feel like down at times; cash flow is tough and sales are hard to come by. But before you know it you’re climbing back up again and doing loop de loops. That’s just business. But, cash flow can be a huge stumbling block and can often be the difference between climbing or falling flat on your face. However, it doesn’t need to be this way. I want to share with you four simple secrets to controlling your small business cash flow. Hopefully providing you with the knowledge and tools to stay one step ahead, or at least be able to predict your cash flow, will help you handle those downward spiral moments.

Make sure you know what is going out and being paid

Let’s be honest, those cash outflows can often run away with you, especially when managing multiple figures and debits. We can certainly be guilty of neglecting our personal finances when it comes to our own bank accounts, so there is no hiding from the fact that your business accounts can go the same way. However, things like Swift corporation could help you keep on top of low finances.

Take care of what is coming into your business

While you need to stay on top of what leaves the bank account, you also need to have a handle on what is due to you. Invoices that you issue in the trade can have payment windows of up to thirty days, and many businesses will take advantage of this to manage their own cash flow more effectively. Ensure that you have some sort of system that when it comes to deadlines that they are being chased so that payment is received on time.

Take advantage of payment windows

Much like you can offer payment windows on your invoicing to others, the same courtesy will be offered to you to. This is when you can ensure that you keep the money in your account for the longest possible time, before the payment is due. However, keep on top of this to ensure that you do adhere to invoicing times and that you don’t pay late. Owing a debt can be more costly where fees can be applied.

Could you control your overhead a little better?

Finally, could you control your business overhead better? It can be far too tempting to look for a larger premises with a big lease or get the latest and greatest new computer equipment, but make sure that all your overhead is affordable to you, especially in times when cash flow may be low. The last thing you want is for your business costs to be the reason that you go out of business.

I hope that these four simple steps can help you better control your business cash flow.


Henry Brown is an online marketing executive. When he isn’t talking shop he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.


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