How to take control of your SMB's cash flow

You’ve got strong sales and solid margins. However, if cash isn’t flowing reliably into your business, then it becomes almost impossible to scale.  

Unfortunately, cash flow issues affect countless British SMBs. 73% are impacted by late payments, while SME deposits have fallen from £270 billion in Q4 2021 to £223 billion in Q1 2024. 

Cash flow issues might be common—but that doesn’t mean you have to accept them. By following the 6 tips outlined below, taken from our latest report 5 tips and tricks to becoming a £1M business, you can break the cycle and build a steady cash flow that’s built to scale. 

1. Know where you stand in real time

You can’t manage what you can’t see. When cash flow is tight, delayed insights are dangerous. If you’re waiting until month-end to find out how much cash you have—or if you’re still stitching together spreadsheets from multiple tools—you’re not in control. 

The solution? To use real-time dashboards. 

Live dashboards provide at-a-glance insights showing the cash that’s coming into, and leaving, the business. These centralised systems give you instant access to key metrics like your revenue, outgoings, tax liabilities, and upcoming expenses. 

Eliminate guesswork once and for all. Make fast, confident decisions based on real-time numbers—whether that means delaying an upcoming expense or investing in growth.

2. Get paid faster

Delayed payments are one of the most common—and costly—cash flow problems for SMBs. According to QuickBooks’ 2025 Small Business Late Payments Report, 62% of businesses are owed money from overdue invoices. On average, they’re chasing over £21,000. This is money that you could be spending on everything from staff salaries to inventory. 

Here’s how to reduce these kinds of shortfalls:

• Shorten your payment terms. 30-day terms are standard, but consider reducing them to 14 or even 7 days—especially for repeat clients.

• Offer early payment discounts. A small incentive (like 2% off if paid within 7 days) can go a long way.

• Charge interest on overdue invoices. If a client can’t pay you on time, then it’s only appropriate to consider charging them interestfair that they should pay a little extra.

• Automate your invoicing and reminders. Tools like QuickBooks Advanced let you send, track, and follow up on invoices automatically—so you don’t waste time chasing payments. 

The goal isn’t just to get paid. It’s to get paid on time, every time.

3. Smooth out your outgoings

It’s not just late income that causes problems—badly timed expenses can do just as much damage.

One large supplier invoice, a surprise tax bill, or an unplanned inventory purchase can drain your account and throw your plans off course. That’s why smart businesses don’t just manage cash in—they actively shape how and when money goes out.

The following tips can help you better manage your outgoings:

• Negotiate longer payment terms with suppliers—45 or 60 days instead of 30 can give you breathing room.

• Use instalment plans or business credit to spread out large purchases.

• Avoid stockpiling inventory unless the discount truly outweighs the cash drain.

• Use real-time data to spot upcoming outgoings early and adjust before they bite.

A smoother expense profile means fewer surprises, and fewer sleepless nights.

4. Build and maintain a cash buffer

Unfortunately, every business runs into unexpected costs. The only question is whether you’ll be ready for them.

That’s why every growing business needs a cash buffer. According to McKinsey in its Moving from cash preservation to cash excellence for the next normal article, extra cash was a lifeline for many companies during the COVID-19 crisis—and it remains just as critical today.

Aim to keep 2–3 months of operating expenses in reserve. That way, a delayed invoice or sudden dip in sales doesn’t derail your operations.

Here are few ways to approach building your business’s buffer:

• Use cash flow forecasts to spot dips early and hold back spending.

• Reduce reliance on short-term loans, which can be expensive and hard to access when you need them most.

• Unlock cash from unpaid invoices through invoice financing, if needed.

• Set up pre-approved credit lines so funding is available before you’re desperate for it.

It’s important to remember that cash reserves aren’t just a safety net—they’re what give you room to act boldly when opportunity strikes.

5. Forecast ahead—not just react

Looking at your current cash position is useful. However, to stay in control, you need to know what’s coming next—when money will land, when expenses will spike, and where shortfalls might appear.

This is where dynamic forecasting comes in. The best businesses don’t wait for problems. They simulate different scenarios—best case, worst case, and everything in between—and plan accordingly.

With tools like QuickBooks Advanced, you can build rolling forecasts that update in real time, model the impact of a new hire, product launch, or price change, and spot cash gaps weeks in advance.

Forecasting allows you to make confident, well-timed moves. It’s a crucial way to stay in control of your cash flow. 

6. Get strategic with your accountant

Many SMBs underuse their accountant. They wait for year-end, submit their figures, and get a bill. Instead, you should view your accountant as a strategic growth partner that can help you:

• Understand your cash cycle in depth

• Optimise payment terms with customers and suppliers

• Set up smarter systems for forecasting, collections, and planning

• Stay compliant without the last-minute scramble

The key is to give your accountant full access to your business’s finances. With shared access to real-time data, your accountant becomes a second brain for your business. They can flag issues before they hit, helping you build a stronger and more resilient operation.

Control brings confidence

Cash flow doesn’t fix itself. If you’re constantly chasing payments or juggling bills, it’s a sign your systems aren’t fit for scale.

The good news? You can fix this by following the tips outlined above.

For more information on how to take control of your cash flow once and for all, download our latest report, 5 tips and tricks to becoming a £1M business.

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