Cash is the lifeblood of any business. Unlike profit, cash flow accounts for all the incomings and outgoings of a business – so it’s the most accurate representation of how much money you have at any time.
That’s why knowing how to improve cash flow is key. Maximising cash flow can help drive business growth, profitability and long-term sustainability. On the flipside, poor cash flow management can quickly lead to strained finances, debt blow-out and operational bottlenecks.
So, what should you be doing to keep the cash flowing? The first step is to build a cash reserve. This acts as a buffer to manage unexpected costs, ensures you can pay the bills, and gives you access to finances you can use to grow your business. You should also stay on top of your finances, make sure you get paid on time, and keep debt at a manageable level.
Below, you’ll find practical tips including ways to improve cash flow, how to effectively manage your invoicing process, and how to keep your finances in check.