Cash Flow
Practical Ways to Improve Cash Flow Visibility
4 min read
Profitable businesses still fail when cash timing is not managed. Visibility comes first, then control.
Forecast thirteen weeks ahead
A rolling thirteen-week view of expected receipts and payments is long enough to see pressure forming and short enough to stay accurate. Update it weekly.
Shorten the collection cycle
Invoice on completion rather than at month-end, set clear terms, and follow up early. A few days off your average collection time is often worth more than a new line of credit.
Separate tax money from working capital
GST and PAYG collected on behalf of the ATO is not trading cash. Holding it separately prevents the most common cash flow shock small businesses experience.
Cash flow management is mostly timing discipline supported by a forecast you actually keep up to date.
