Cash Flow Tips Every Small Business Should Know

You’ve heard the saying: Cash is king. And it’s true.

Cash is what keeps your business running. It pays your team, your suppliers, your tax bills and your overheads. Whether it’s money in your bank or waiting to clear, if it’s not managed properly, it can slow everything down.

It doesn’t matter how profitable your business looks on paper. If you can’t pay your bills when they’re due, that’s a cash flow issue.

This guide will show you how to stay ahead and keep your business cash flow steady and strong.

Why Cash Flow Matters

Cash flow is one of the most common reasons small businesses struggle. Even if your sales are growing, poor cash flow can stop you from paying staff, suppliers or the ATO on time. These tips will help you stay on top of it and avoid the stress.

8 Ways to Keep Your Cash Flow on Track

1. Understand the Numbers

You don’t need to be an accountant to stay on top of your financials. But you do need to check them regularly.

Start by reviewing your profit and loss report, balance sheet and cash flow statement. These reports show you where your money is coming from, where it’s going, and how much cash you have available.

If the numbers don’t make sense, we’re here to help you understand them clearly so you can make better decisions.

2. Plan Ahead

Cash flow often fluctuates depending on the time of year. Whether it's a seasonal dip in income or a once-off expense, knowing what’s ahead helps you stay in control.

Review your income and expenses for the next 30 to 60 days. Look at the same period last year to spot any patterns. Planning gives you time to act before problems arise.

3. Build Healthy Habits

Strong cash flow often comes down to consistent habits. These can include:

• Checking your cash position monthly

• Following up on late invoices

• Selling old stock or unused equipment

• Setting aside a small buffer for slow periods

  
  

Even small habits like these can improve your cash flow over time.

4. Know the Warning Signs

Cash flow issues usually start small. If you can spot the signs early, they’re easier to fix.

Look out for:

• Customers taking more than 30 days to pay

• Struggling to pay wages or supplier bills

• Relying on credit to get through the month

• Not having any cash buffer in your bank account

  
  

If you’ve noticed any of these, it’s a good idea to speak with your bookkeeper.

5. Grow at the Right Pace

Growth is great. But growing too quickly can put pressure on your cash.

More sales often mean more spending. You may need to hire staff, buy stock or invest in new systems.

If you don’t have the cash to support that growth, you could end up in trouble.

Grow steadily. Focus on sustainability, not speed.

6. Invoice Without Delay

Send your invoices as soon as possible. Waiting a week or two to invoice slows down your cash flow.

Invoice as soon as the job is complete or the product is delivered. Make payments easier by offering bank transfer, credit card or PayPal.

The faster you invoice, the faster you get paid.

7. Use Smart Tools

Cash flow-friendly tools can help you stay organised and in control. Use apps that:

• Send automatic invoice reminders

• Forecast your cash position

• Connect with your accounting software

  
  

These tools save time and give you a clearer picture of your financial health.

8. Review Your Pricing and Payment Terms

If your clients are always paying late, or cash flow is tight, it could be time to revisit your pricing and terms. Consider:

• Shortening payment terms (for example, from 30 days to 7 or 14)

• Charging deposits upfront

• Offering early payment incentives

• Increasing your prices if they haven’t changed in a while

  
  

These small changes can lead to big improvements in cash flow.

Need a Hand with Cash Flow?

If staying on top of your cash flow feels overwhelming, you're not alone. Many business owners feel the same way. That’s exactly what we’re here for.

At Vivid Enterprise Solutions, we help businesses simplify their numbers, tidy up systems and take the pressure off. Whether you need a quick check-in or a full review, we can help you get things back on track.

Disclaimer: This article is intended to provide general guidance and is not specific advice. We encourage you to seek tailored advice for your circumstances.