Financial Management
Cash Flow Management: How to Keep Your Business Solvent
Profitable businesses still fail when cash runs out at the wrong moment. Managing the timing of money is a survival skill. Here's the practical version.
01Profit Is Not Cash
You can be profitable on paper and broke in the bank if customers pay slowly or you buy inventory upfront. Cash flow tracks the actual timing of money, which is what keeps the lights on.
02Forecast the Next 90 Days
A rolling forecast of expected money in and out for the coming quarter turns nasty surprises into planned decisions. It doesn't need to be fancy — just honest.
03Speed Up Money In
Invoice promptly, make paying easy, and consider deposits or milestone billing for larger jobs. Every day faster is a day of cushion earned.
04Slow Down Money Out (Sensibly)
Use the full payment terms vendors offer without going late, and time large purchases for stronger months. Don't pay in January what's not due until February.
05Build a Buffer
A reserve covering a few months of expenses turns emergencies into inconveniences. Build it gradually from good months and protect it.
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Schedule a ConsultationThis article is general information, not individualized tax, legal, or financial advice. Every situation is different — reach out and we'll look at yours directly.