Cash Flow Management: A Guide for Business Owners

Published 4:42 pm Wednesday, July 23, 2025

By Kyle Noack

Kyle Noack

As we have just surpassed the halfway point of calendar year 2025, small business owners across the country are navigating a complex financial landscape.

Inflation remains stubborn in some areas of the economy, interest rates are still elevated as compared to pre-2020 levels, and operating costs continue to rise. Managing cash flow in this environment is essential for the success of your business.

Cash flow can simply be defined as the movement of money in and out of your business and is an important indicator of the business’ overall financial health. According to the most recent Small Business Credit Survey released by the Federal Reserve, 56 percent of small business owners cite cash flow as their top concern in 2025.

Even businesses experiencing growth are feeling the squeeze, as rising costs and delayed payments strain liquidity with 75% of firms citing concerns about rising costs of goods, services and wages as challenges to their business.

Many businesses are experiencing increased costs, slower customer payments and tighter lending as a result. Below are five helpful tips to assist you in getting a handle on stabilizing your cash flow:

  1. Forecast Monthly Cash Flow – Utilize accounting software or an Excel spreadsheet to prepare a rolling 12-month cash flow forecast to anticipate shortfalls and surpluses. Update this report after the end of every month. This process helps you plan ahead and visualize variances for seasonal dips, tax payments, and large expenses.
  2. Accelerate Receivables – Offer early payment discounts, send invoices promptly and utilize digital payment processes to foster an environment that makes it quick and easy for your customers to pay you. You may also consider whether it is appropriate in your industry to offer discounts or perks for loyal, recurring customers.
  3. Control Expenses Ruthlessly – Utilize accounting software or your books and records to review all recurring expenses keeping only those that are necessary. Review contracts with your vendors to analyze if any possibilities exist to re-negotiate the terms. While no one cut may seem significant, these can quickly add up to valuable savings.
  4. Build a Cash Reserve – Aim to always keep at least 1–3 months of operating expenses in reserves to provide a buffer for unexpected slowdowns or emergencies. Consider establishing a line of credit as an additional tool and borrow responsibly by timing up your draws ahead of expected cash flow to quickly repay the debt and limit interest rate cost.
  5. Leverage Technology/ Expertise – Many AI-powered tools are more accessible than ever and can help you track trends and flag cash flow issues early. You can also utilize local experts like a CPA specializing in small business accounting to assist you with setting up and monitoring cash flow trends within your business.

Cash flow management is about positioning your business for sustainable growth. By staying proactive, embracing technology, and making informed financial decisions, small business owners can navigate uncertainty with confidence.

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    • Kyle W. Noack, CPA/CFP® is the Chief Executive Officer for Keller &; Associates CPAs, PLLC and Keller Wealth Advisors. To view other financial planning articles, please visit https://kellerwealthadvisors.com/insights/published-insights.

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