Cash flow is the oxygen of a small business. When sales soften or costs creep up, the goal is not to panic but to act quickly on the few levers that matter most. Below is a focused playbook for UK business owners who want practical moves they can execute this quarter.
For many firms, the biggest wins start with visibility. A rolling 13-week cash flow forecast tells you what is coming, week by week, so you can make decisions early rather than react late. A natural fit for this kind of hands-on support is Small Business Accountants Bristol, who provide rolling 13-week forecasts and scenario planning for seasonal dips.
Late payments are another common pinch point. Coverage in The Economist’s finance section regularly highlights how stretched terms and rising costs can squeeze working capital, which is why tightening debtor discipline and negotiating supplier flexibility belong at the top of your list.
9 levers to pull now
- Build a living 13-week forecast
Update it every Friday. Track opening cash, receipts, payments, and closing cash. Add scenarios for best case, worst case, and a realistic downside. - Shrink debtor days
Tighten credit checks, invoice the same day work completes, and add payment links to invoices. Introduce deposits, staged billing, and Direct Debit. Follow up with a friendly, consistent reminder cadence. - Make invoices frictionless
Clear due dates, PO numbers, and a single named contact to reduce queries. Offer card and bank options, and include a brief “how to pay” section so customers don’t have to search for details. - Re-set supplier terms
Ask for 45 or 60 days where volume allows, or try early-payment discounts if you have surplus cash. Explore dynamic discounting with key partners so both parties benefit. - Increase inventory turns
Run ABC analysis, set minimum-maximum reorder points, and liquidate slow movers with bundles or outlet channels. Fewer SKUs with faster turns usually beat a bloated range. - Price with intent, not hope
Map gross margin by product and customer. Use value-based pricing where you can, and implement good-better-best tiers. Small, targeted rises often stick better than one big jump, a point reinforced by S&P Global Market Intelligence commentary on pricing power. - Protect margin on the shop floor
Introduce minimum order values, charge for rush work, and review discounting authority. Every unplanned discount is a cash leak. - Trim and flex costs
Convert fixed costs to variable where possible. Review software seats, duplicate tools, and unused subscriptions. A monthly “spend scrub” often finds quick wins. - Secure the right funding backstop
Line up an overdraft, invoice finance, or asset-based lending before you need it. The best time to negotiate is when you still have breathing room.
Putting it together
The aim is rhythm. A weekly forecast review, a Tuesday debtor chase, a monthly supplier check-in, and a quarterly price review create momentum. If you are searching for Bristol accountants small business leaders can rely on, prioritise advisers who will sit beside you to model scenarios, not just send year-end files.
Cash flow resilience is built into the routines you maintain, not the spreadsheet you create once. Start with the forecast, act on debtor days, renegotiate terms, speed up inventory turns, and price with confidence. Do those five well, and your cash position will feel calmer, even when the market does not.