• Laura Steele

The Importance Of Keeping On Top Of Your Cashflow

Cash flow is crucial for businesses of all sizes. However, keeping on top of your cashflow is even more important for small businesses. A recent study found that a huge 82% of small businesses fail due to cashflow issues in the business.

Make sure you are not one of these 82% of small businesses by staying on top of your cashflow. You are able to do so much more for your business by staying on top of your cashflow. We have shared some examples below.

Plan Better

When you have an accurate and clear cashflow statement you are able to make better plans and business decisions. You’ll be able to clearly see how much money you have at any given moment. If you have no control or awareness of your cashflow you can easily put your business at risk with bad business decisions or plans that you are unable to afford in the long run.

Where You Spend

By correctly managing your cashflow you can see where you are spending your money. It can be hard to picture your expenditures in black and white, but it is important to be fully aware of where your money is going and why. This may also help you when looking at areas of the business where you can cut costs.

Protect Relationships

When you have cashflow issues it may mean you don’t have the funds available to pay your suppliers. By having a clear cashflow plan you can contact the supplier and explain the situation. Instead of getting reminders from them, you can contact them first and offer a payment plan to protect that business relationship.


Most small businesses want to grow, and that’s great. However, you need to expand at the right time. Business growth costs money and if you expand at the wrong time you are likely to have more issues in the long-term. It could be a small growth such as a new employee, but even this can be very expensive. You need their desk, computer, stationery, their salary, holiday pay and pension too. Use your cashflow planning tool to make sure you grow your business at the right time and in the right way.

If you need help planning your cashflow, why not download our free cashflow planning tool. We think you’ll find it really useful for your business cashflow management.

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