Hi there fellow business owners,
Struggling with cash flow in your business? You’re not alone.
Many business owners experience the stress of having more money going out than coming in. But the good news is—there are practical steps you can take to improve it. In a recent video, Mick from Ignition Accountants breaks down six key strategies to help you manage and optimise your cash flow.
These aren’t overnight fixes, but with small, consistent changes, they can lead to significant financial improvements.
1. Improve Debtor Collection
Tighten up your payment terms and enforce them. Don’t wait months for clients to pay—introduce clear invoicing timelines, follow up promptly, and consider using automated reminders.
2. Use Credit Terms Available
Before extending credit to customers, especially new ones, consider running credit checks or requesting personal guarantees. This helps reduce the risk of bad debts and unpaid invoices.
3. Monitor Stock Levels
Holding too much stock ties up your cash. Use technology and stock management tools to better track inventory levels, reduce excess, and free up capital for other areas of the business.
4. Review Supplier Contracts
Renegotiating terms with your suppliers—like longer payment terms or bulk order discounts—can ease cash flow pressure. Building strong relationships with your suppliers makes this easier.
5. Budget & Forecast
Regular budgeting and forecasting give you visibility over future income and expenses. This helps you anticipate potential cash flow issues and prepare for them early.
6. Don’t Forget Personal Budgeting
If you’re drawing a salary or taking distributions from the business, your personal spending matters. Tight personal budgeting means you won’t need to draw excessive amounts, leaving more cash in the business.
Cash flow challenges don’t disappear on their own—but with the right strategies and some guidance, you can turn things around and achieve lasting financial stability.
Watch the video here where I talk about 6 Keys To Cash Flow Management
Mick
I’d love to help you achieve your business dreams, please don’t hesitate to contact me;
07 5646 4050
mick@ignitionaccountants.com
Book a call for a complimentary Proactive Accounting Meeting to discuss your accounting profitability
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