How Small Businesses Can Manage Cash Flow Effectively

Know Your Cycle

Map when cash comes in and goes out. Shorten receivables; extend payables when possible.

Forecast Weekly

A 13‑week cash forecast prevents surprises.

Invoice Fast

Bill immediately, offer small early‑pay discounts, and enforce late fees.

Control Inventory

Adopt just‑in‑time where feasible. Dead stock kills cash.

Build a Cash Cushion

Keep 1–2 months of operating expenses in reserve.