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Improve Your Cash Flow Now: Smart Steps Every Small Business Can Tak

  • Writer: Cherie Sayban
    Cherie Sayban
  • 7 days ago
  • 3 min read

Cash flow is the lifeblood of any small business. Even if you’re profitable on paper, running out of cash means you can’t pay bills, cover payroll, or seize growth opportunities. After more than 25 years as a CPA working with entrepreneurs and small business owners, I can tell you this: cash flow problems rarely happen overnight. They usually build quietly — and they can be solved with focused, practical strategies.


Cash flow is the lifeblood of any small business. Even if you’re profitable on paper, running out of cash means you can’t pay bills, cover payroll, or seize growth opportunities. After more than 25 years as a CPA working with entrepreneurs and small business owners, I can tell you this: cash flow problems rarely happen overnight. They usually build quietly — and they can be solved with focused, practical strategies.

Here are key steps you can take right now to improve your short-term cash flow and set your business up for long-term health.



1. Speed Up Money Coming In


  • Invoice faster. Don’t wait until the end of the month. Send invoices as soon as the work is done. 

  • Shorten payment terms. If you currently give 30 days, consider reducing to 15 or 20. 

  • Offer easy payment options. Credit cards, ACH, and online payments remove friction. 

  • Incentivize early payment. Offer a small discount (e.g., 2% off if paid within 10 days).


Pro tip: Review your accounts receivable weekly, not monthly. The squeaky wheel really does get paid first.



2. Slow Down Money Going Out


  • Stretch vendor terms. Ask if you can move from Net 15 to Net 30 or 45. Many suppliers are more flexible than you think. 

  • Prioritize bills. Pay the most critical ones first — payroll, rent, insurance, utilities. 

  • Negotiate. Bulk orders, loyal customer discounts, or simply asking for better terms can improve your cash position.



3. Watch Your Inventory


Excess inventory ties up valuable cash.


  • Track what’s selling and what’s not.

  • Liquidate or discount slow-moving items.

  • Order smaller, more frequent batches if possible.


The goal isn’t just keeping shelves stocked — it’s keeping shelves stocked profitably.



4. Price for Profitability, Not Just Sales


One of the biggest hidden causes of cash flow issues is underpricing. Many small business owners set prices based on what competitors charge or what “feels right.” That approach often leaves money on the table.


Here’s how to get it right:


  1. Know your costs. Add up direct costs (materials, labor) plus overhead (rent, utilities, admin).

  2. Set a healthy margin. Build in a margin that not only covers costs but also contributes to profit and future growth.

  3. Value matters. If your service or product solves a real pain point, price based on value delivered, not just hours or parts.

  4. Revisit regularly. Costs (supplies, wages, shipping) fluctuate — your pricing should too.


Example: If your cost to deliver a service is $100, charging $120 may cover expenses but leaves little for profit. Bumping to $150 or $160 could create real breathing room without scaring off the right customers.



5. Keep an Eye on Metrics


The numbers tell a story. Watch these closely:


  • Days Sales Outstanding (DSO): How long it takes to collect after invoicing.

  • Gross Margin: The difference between sales and direct costs.

  • Operating Expenses: Are they creeping up faster than revenue?


A monthly check-in with your CPA on these numbers can prevent small leaks from becoming a flood.



6. Plan Ahead


Short-term fixes are important, but lasting cash flow health comes from planning.


  • Create rolling 13-week cash flow forecasts.

  • Anticipate seasonal dips or busy periods.

  • Build a cash reserve (even a small one) to cushion surprises.



Final Thoughts


Cash flow management isn’t about cutting everything to the bone — it’s about making money move smarter. When you tighten collections, negotiate payments, keep inventory lean, and price for profit, your business not only survives but thrives.


If you’re unsure where to start, talk to your CPA. We can help you run the numbers, identify hidden cash leaks, and build a pricing strategy that supports both your short-term needs and your long-term vision.


About the Author


Cherie Sayban is a certified public accountant. She has over 25+ years of experience in Finance, Accounting and Bookkeeping.  

Certified Public Accountant, Cherie Sayban


​Cherie Sayban CPA provides various financial and accounting solutions to small and mid-size businesses. Our portfolio includes: tax preparation, payroll preparation, accounts receivable and payables, general ledger, and QuickBooks . Our bookkeeping workshops are offered both in-person and virtually.


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To learn more about Cherie Sayban CPA's website finance services, how we can help grow your business through social media or even strategize with you on some ideas to better manage your businesses finances. Visit us at www.CherieSaybanCPA.com



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