Five steps to better cash flow
Anna Stubbs • September 11, 2023
Need a hand managing cash flow? You’re not alone. The key is getting your invoicing right, by invoicing customers as soon as possible and using tools like Xero’s invoice reminders to move payments along.
That said, there are a few other simple rules you can apply to manage your cash flow and get your invoices paid even faster:
- Keep your books accurate and up to date - so you can see your financial state at a glance.
- Don’t be too lenient with your customers - you can be direct and still polite. Keep a close watch on your accounts receivable turnover at all times and act sooner rather than later.
- Keep your accounting simple - so you have a good handle on these business metrics. We can help with this.
- Keep your business and your professional finances separate - this is essential to understanding your true cash flow position. Mixing your business and personal finances can leave you uncertain about business performance.
- Build a cash reserve - so you are prepared for unexpected events and can take advantage of opportunities when they pop up.
First you want to get your invoicing right. Get into a habit of sending invoices quickly. Then follow the steps above to collect revenue and keep your finances organised.
Get in touch for guidance on your invoicing and business cash flow.
Healthy sales revenue numbers don't always mean your small business is profitable. It's easy to mistake rising sales and income for profitability. But unless you understand your operational costs, profit margins and net profit, you won't truly know whether the business is making long-term, sustainable profit.
Tax planning is a strategic approach to managing your business’ financial affairs, with the aim of legally minimising your tax liability. In other words, you plan ahead to make sure you pay the taxes you should be paying, but not a penny more. Working with your tax adviser, you can look for deductions, credits, exemptions and tax-saving strategies that will help to optimise your company’s overall tax position.
“Just 20% of SMEs identify regulatory compliance as an organisational priority, compared with almost a third of larger firms (32%). With little or no HR support and limited guidance, small businesses often lack awareness of employment law and may struggle to comply with the changes.” CIPD Labour Market Outlook, May 2026 The recent Labour Market Outlook report from the Chartered Institute of Personnel and Development (CIPD) shows that some small and medium-sized enterprises (SMEs) have a poor awareness of employment law and are not prioritising their regulatory duty as employers. But with the Employment Rights Act 2025 introducing several recent changes to UK employment law, it’s vital that your SME is aware of current employment law and your regulatory requirements as an employer. Five recent changes to employment law that came into force from April 2026.