7 Tips For Managing Business Cash Flow

Cash Flow & Your BusinessUnderstanding Cash Flow

The cash flow of a business can be what makes or breaks it. Even if you have lots of customers and your store is packed, if you cannot manage your business cash flow and the bills aren’t being paid, it can all start to crumble pretty fast.

There are three key elements to managing your business cash flow. 

  • Accounts receivable (what you are owed)
  • Accounts payable (what you owe)
  • Shortfalls (when you owe more that you are owed)



Make sure to maintain your cash reserves for times when you have a shortfall. Every businesses has hiccups along the way. It’s always a shame when one of those hiccups comes along and there are no reserves to help the business survive. Then, what was once a promising company is drowning and gasping for air.


Always be monitoring your cash flow. You can do this with this simple worksheet provided by SCORE. Monitor your cashflow at least weekly to make sure you are on solid ground.

Quicker Receivables. 

Customers love discounts. Give them a reason to pay your more quickly by providing a discount or shorten the terms of your agreements in the first place. Are customers snail mailing your payment? Setup online payment and get paid in hours instead of days or weeks.

Quicker Receivables. 

Look at due dates for your accounts payable and make sure you aren’t paying too soon. You can also push payables as long as possible to give yourself a little breathing room but try not to make a habit of it.


Make sure you have a toolbox stocked with sales incentives that can help bolster short term sales when needed. Set a rule for when a sales incentive is triggered. For instance when cash flow reaches a low of $10,000.

Sales Tax Game.

Don’t use sales tax money to float your business. Keep the money separate and don’t save it as a fall-back, it’s a dangerous game to play otherwise.


Establish a good relationship with your bank and a good credit provider. A line of equity can be a lifeline if your business gets in a cash flow pinch.

Is your cash flow out of whack? Do you cringe every time you look at your cash flow statements? By outsourcing your bookkeeping and accounting services, you will not only understand your cash flow, you will also gain the freedom to concentrate on other areas – like generating new customers and growing your business. To learn more about how we can help your business thrive, call us at 727.828.9945 for more information.

About Accounting & Business Partners

Accounting & Business Partners is a CPA firm with an accurate, consistent and timely bookkeeping, payroll and tax departments. We believe that success lies in numbers. However, the drive behind the numbers is what truly matters. That’s why we look beyond the financial statements.

Accounting & Business Partners Team