Cashflow First: Seven Actionable Steps for Your Business to Survive Uncertainty

For small businesses the single biggest operational risk is cash flow.

For many small businesses the single biggest operational risk is cash flow. Profitable businesses still fail because they can’t meet day-to-day obligations. This article sets out seven pragmatic, accounting-led actions that business owners can implement now to improve liquidity and build resilience.

1. Build a rolling 13-week cash forecast Short-term visibility matters more than annual forecasts. A 13-week rolling forecast shows timing gaps and lets you plan short-term financing, staffing or supplier negotiations.

   
   

2. Prioritise receivables automation Use online invoicing and automated reminders; offer e-invoicing, set clear payment terms (e.g., 14 days), and consider small early-payment discounts to accelerate receipts.

   
   

3. Negotiate supplier terms strategically Ask for staged deliveries, extended payment terms or early-payment discounts. Consolidate purchases with preferred suppliers to improve leverage.

   
   

4. Manage stock and WIP tightly Reduce over-ordering and inspect slow-moving SKUs for clearance. For service firms, invoice at clear milestones to convert work-in-progress into cash.

   
   

5. Use short-term finance sensibly Invoice finance or a short revolving credit facility can plug timing gaps; avoid long-term commitments for short-term problems. Compare fees and covenants carefully.

   
   

6. Control discretionary spend Freeze or delay non-essential hiring, training or CAPEX until cash flows stabilise. Consider leasing rather than buying where appropriate.

   
   

7. Scenario-test and stress-proof Run best-, expected- and worst-case cash scenarios. Identify the trigger points that require action (e.g., overdraft usage over X% or delayed PAYE payment)

   
   

Tax timing and cash planning Plan corporation tax payments and VAT returns with cash flow in mind. Where possible, defer non-urgent conduct that creates tax liabilities; use available reliefs to soften tax due peaks.

How an accountant helps Accountants can build accurate cash forecasts linked to your accounting system, set KPI dashboards, and advise on the most cost-effective short-term finance. They also ensure tax timings are incorporated and help negotiate finance with lenders.

If you’d like us to build a tailored 13-week cash forecast and a rescue plan for your business, we offer a pragmatic short-term cash clinic — book a session with Brian.