Managing Cash Flow
                     Managing Cash 
Flow
This time of year can be unpredictable for businesses—
whether it’s a period of increased activity or a 
temporary shutdown. That’s why understanding and 
managing your cash flow is critical. Effective cash flow 
management ensures your business remains resilient 
and ready to grow, no matter the season. Here are 
some practical tips to help you stay on top of your 
finances:
1. Understand Your Cash Flow
Start by preparing a cash flow statement. This 
document tracks all cash coming in (from sales, loans, 
or investments) and going out (expenses, payroll, 
inventory). Regularly reviewing it will help you identify 
patterns and anticipate potential cash surpluses or 
shortfalls.
2. Optimise Your Receivables
Speed up customer payments by offering incentives like 
early-payment discounts and setting clear payment 
terms. Use digital invoicing and send reminders to 
minimise delays.
3. Monitor Your Inventory
Excess inventory ties up valuable cash. Implement 
inventory management systems to maintain the right 
stock levels and avoid overordering.
4. Plan for Seasonal Variations
If your business experiences seasonal highs and lows, 
build a cash reserve during peak periods to cover 
slower months. You might also explore promotions or 
introduce new products and services during quieter 
times to boost income.
5. Secure a Safety Net
Establishing a line of credit or emergency fund can 
provide a buffer during cash flow shortages. It’s best to 
arrange financing while your business is in a strong 
financial position, so you’re prepared when challenges 
arise.
6. Track and Forecast Regularly
Use real-time reporting tools to monitor your cash flow 
and create forecasts. Proactive planning helps you spot 
and address issues before they become major 
problems.
At iKeep Bookkeeping, we specialise in helping 
businesses manage their cash flow, develop budgets 
and forecasts, and plan for financial security. Contact 
your account manager today to learn more.