Cash is king! practical tips to keep your business in the money.

Cash is KING! Practical Tips to Keep Your Business in the Money.

December 10, 2025

Background

Managing cashflow effectively is one of the most important aspects of running a successful small or medium-sized enterprise (SME). Even outwardly profitable businesses can struggle if cashflow isn’t kept front and centre by the business owner.

At Sakura, our mantra when discussing cashflow is ‘CASH is KING’!

So, we understand many of the practical challenges that SMEs face and have put together some simple guidance and tips to ensure that you are doing as much as possible on a day to day basis to manage cashflow.

Why Cashflow Matters

Cashflow is the lifeblood of your business. 

It means you can pay suppliers, your employees, HMRC – and of course yourself on time. 

However poor cashflow and problems with cashflow, only adds stress to the business owner, can strain relationships with suppliers, unsettle employees and result in a lack of investment required in your own business.

The SAKURA Tips for Managing Cashflow:

1. Keep on top of Customer payments 

  • Invoice promptly: Send invoices as soon as work is completed, or agree on WHEN invoices can be issued at stages of larger projects e.g. 50% upfront
  • Set clear payment terms: Be clear about your payment terms with a Customer AND follow up that invoice at (or just before) that payment date 
  • Consider other options: Put Customers on a direct debit, use Stripe or PayPal for immediate payment or offer a discount for early payments.

2. Control Your Business Costs 

  • Review costs: Continually review business costs to ensure that these are necessary, while cutting costs such as old software subscriptions, excess office space routinely.
  • Consider pricing changes or recharges to Customers: Consider whether certain costs should be recharged to Customers (or review or update prices accordingly)
  • Suppliers: Where possible, negotiate better terms with suppliers or slightly loner payment terms ..

3. Build a Tax Savings Reserve

Proactively start to regularly set aside funds for upcoming VAT, PAYE/NI or Corporation tax payments 

Doing this will ensure that there are no surprises or increased stress at each month end, quarter end or even year end e.g. a small amount each month will make a HUGE difference across the year!

4. Use Technology and Software

Accounting software, such as Xero and QuickBooks, can help to streamline and automate certain steps such as invoicing Customers and sending payment reminders etc.

So, if you are NOT using this software or these features right now, look at implementing it now for your business – as it is an additional simple step that will help obtain more cash into your business more quickly.

5. Explore Other Finance options 

There are a variety of third party finance options in the marketplace now for use by SMEs (some of which are accessed and managed via software and technology), which can help to manage either short term cashflow problems or in some cases longer term issues.

So don’t be afraid to consider the RIGHT finance option at that RIGHT time for your business 

  • Overdraft facilities – short term option for ‘one off’ cash issue or seasonality 
  • Invoice financing – short term option or where working with large corporates with 90/120 day payment terms 
  • Business loans – a longer term option for business investment opportunities, or where the business requires 12/18 months to get their cashflow management operating smoothly.

AND a general rule is to always consider the costs and benefits before committing to third party finance – and be aware that the directors will typically have to personally guarantee any funding…..

6. Use a simple 13 Week Cashflow Forecast 

Create a simple cashflow forecast that looks ahead for 3 months or 13 weeks!

At SAKURA we use these forecasts with our Clients to monitor and plan for weekly cash inflows and outflows to identify in what week there may be cashflow challenges.

This allows the business owner to then take ACTION, whether 

  • to chase a Customer for a payment early 
  • call a Supplier to let them know a payment will be delayed for a few days, or
  • arrange a Time to Pay arrangement with HMRC ahead of a deadline

How Sakura Can Help

At Sakura, we regularly assist SMEs with improving or better managing their cashflow as they grow. 

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