How do you manage your business cash flow?

As the saying goes, cash is king and without it, it can be difficult to keep the business going.

Here are some tips to help you keep your cash flow worries at bay:

  1. Invoice regularly, and I mean as soon as the deal is agreed send the invoice out.
  1. Always take at least 50% upfront once you have reached an agreement with a client to work together.
  1. For work that is not due to be delivered yet, set up a direct debit to collect payments in advance of starting the work.
  1. Have clear payment terms and be firm with them. Set up reminders to automatically go out to clients should an invoice be overdue.
  1. Automate your payment collection. Go Cardless is fantastic, doesn’t cost the earth and is quite easy to set up. Here is the link: Stripe ( and Paypal ( are good as well. You can always factor in the fees in your price when costing a job to cover this expense. Another way of looking at it is this: the small fee is worth paying to keep your cash flow steady – you’ll get your cash in quicker and it will save you having awkward conversations.
  1. Include a payment link on the invoices you send out. This saves the client the hassle of flaffing around with setting up payments in their bank account, or even forgetting to pay you. You will need to sign up a payment collection service such as Stripe or PayPal to take money from the client’s card.
  1. Pay all your suppliers on a particular date, once a month. This will save you stressing people and bills through out the month. I personally think staggering bill dates can be stressful, so its best to do it once, and spend the rest of the month running your business. You will however need to be disciplined with your money because you don’t want to get to bill paying and find there is no money in the bank. In addition, automate where you can by setting up direct debits and standing orders to save you incurring late fees. You can read the article about managing business finances here:
  1. Stay on top of your bookkeeping and reconcile your business accounts at least once a month. Bookkeeping shouldn’t be an exercise that you only go through while you prepare accounts. If you really hate doing your bookkeeping, get someone to do it for you. However, make sure you get a monthly report showing how your business is doing, who owes you money and who do you owe. Regular reports also highlight areas where your business is leaking cash, and this will help you plug holes before the damage is done. If you need a crash course on how to do your bookkeeping, do get in touch here.

These eight steps will go a long way in improving the cash flow for your business, so you can stop worrying and stress less!

Looking for more advice on how to manager your business cash flow? Check out our growing list of FREE resources!

Violet Karamagi is an accountant with over a decade of experience and a fierce passion for helping people live a life free of chains. If you’d like to find out more about how we can help – check out our workshops and 1:1 sessions or join our free online community centred around building better financial habits.

If you would like an extra set of eyes to help you with your finances, learn more about how my Financial Health Check can best serve you!

Subscribe ToMy Newsletter

Join my mailing list to receive the latest news and updates.

Thank you! You have successfully subscribed.