Ask the Advisor: How can I improve my cashflow management?

In Ask the Advisor, we put your questions to the experts. Our FBA Family Business Accredited Advisors answer frequently asked questions from family business clients for your benefit. Responses are from trusted professionals who understand the ins and outs of family business. In this Ask the Advisor, Anita Cohen answers the question, "How can I improve my cashflow management?"

4 June, 2025

Family Business Advisor, Family Business Advisors, New South Wales, Supporting Families in Business, Article

How can I improve my cashflow management?

Managing cashflow is a crucial aspect of running any business. It is often the lifeblood that keeps the business operations smooth and sustainable.

Businesses often face several challenges when managing cashflow:

Delayed Payments
High Overheads
Poor Financial Planning
Seasonality

Here are key strategies and advice to help improve cashflow management:

1. Implement Effective Invoicing Practices

2. Monitor Cashflow Regularly

3. Optimise Inventory Management

4. Control Overheads

5. Secure a Line of Credit

6. Improve Sales and Marketing Efforts

7. Plan for Seasonality

Effective cashflow management is essential for sustaining the financial health of a business. By implementing the strategies outlined above, businesses can improve their cashflow, reduce the risk of financial instability, and position themselves for long-term success. Remember, staying proactive and vigilant is key to managing cashflow effectively.