Is Your Company’s Cash Flow Stuck? Here Are 5 Steps to Get It Moving Again

Cash flow is the lifeblood of any business, big or small. You could be hitting all your sales targets, cutting expenses, and landing new clients left and right, but if your cash flow is out of sync, your business will feel the pinch. Late payments, poor forecasting, and inefficient systems can quickly turn a profitable company into one that’s scrambling to pay the bills.

The good news? Fixing cash flow issues doesn’t require magic—it just requires intention and a solid plan. By focusing on smarter strategies, technology, and better financial habits, you can keep the money coming in at the right time, going out where it’s needed, and always flowing in the right direction. Let’s walk through the essential steps needed to improve your company’s cash flow so you can breathe easier and plan for growth.

Track Finances As Your Business Depends on It (Because It Does)

If you don’t know where your money is going or where it’s coming from, you’re not managing cash flow—you’re guessing. Successful businesses don’t operate on hope; they track finances diligently and constantly. Proper financial tracking gives businesses the visibility they need to understand spending, predict cash shortfalls, and plan ahead.

Start with the basics: know your income, expenses, and outstanding receivables inside and out. Set up systems to monitor these on a weekly or monthly basis so you always have a clear picture of your cash flow situation. Tracking finances doesn’t just help you react to problems; it allows you to anticipate them. If you notice a pattern of late payments from clients, for example, you can adjust your payment terms or follow up more proactively.

Use AI to Work Smarter—Your AI Accountant Can Help

If you’re still managing cash flow with manual spreadsheets and traditional tools, you’re doing it the hard way. Modern businesses are leveraging artificial intelligence to work smarter, faster, and with far fewer errors. This is where trying out an AI accountant could be beneficial.

AI-powered tools are revolutionizing financial management by automating tedious processes and providing real-time insights that improve cash flow.

AI doesn’t just crunch numbers; it analyzes them. An AI accountant can predict cash shortages before they happen, optimize payment cycles, and flag unusual spending patterns. These tools handle everything from expense categorization to invoice management. This frees you up to focus on strategic decisions. Instead of sifting through stacks of data, you get clean, actionable reports that show exactly where your business stands and what steps to take next.

By integrating AI tools into your financial systems, you streamline operations, reduce human error, and gain a competitive edge. The result? Faster decision-making, smarter planning, and a healthier cash flow that supports growth without the guesswork.

Shorten Your Payment Terms to Get Paid Faster

It doesn’t matter how much revenue your business generates if you’re constantly waiting to get paid. Extended payment terms and slow-paying clients are among the biggest culprits of cash flow crunches. While businesses often hesitate to ask for faster payments, tightening your terms is a simple and effective way to improve cash flow without making drastic changes.

Start by revisiting your invoicing process. Do your invoices go out on time? Are payment terms clear and easy for clients to follow? Many businesses stick to outdated net-30 terms out of habit, but in today’s fast-moving world, clients are increasingly open to shorter deadlines like net-14 or even immediate payment upon delivery. Adding incentives like early payment discounts can also encourage clients to settle their invoices faster. If late payments are a recurring issue, consider implementing automated payment reminders to keep your receivables on track.

Negotiate Better Payment Terms With Vendors

While you’re working to speed up the money coming in, don’t forget about the money going out. Cash flow is all about timing—if your expenses are due before your receivables come in, you’ll find yourself in trouble. One of the smartest ways to improve cash flow is to negotiate more favorable payment terms with vendors.

Start by assessing your relationships with suppliers and service providers. If you’ve been a loyal customer or have a history of paying on time, you’re in a strong position to negotiate. Ask for extended payment terms, such as net-45 or net-60, to give yourself more breathing room between outgoing and incoming cash. Better yet, look for opportunities to align payment schedules with your revenue cycles.

Keep a Cash Flow Forecast to Plan for the Unexpected

If your business doesn’t have a cash flow forecast, you’re flying blind. A forecast isn’t just a tool for big corporations—it’s essential for businesses of any size. Cash flow forecasting gives you a forward-looking view of your finances, helping you anticipate challenges, seize opportunities, and plan for growth.

Creating a cash flow forecast starts with understanding your revenue patterns, expenses, and payment cycles. Look ahead to the next three, six, or even twelve months to predict when cash will come in and when major expenses are due. This allows you to spot potential shortfalls early and make adjustments before they turn into problems.

For growing businesses, cash flow forecasting is especially critical. Rapid growth often requires upfront expenses, and without a clear forecast, you risk running out of cash just as your business is taking off.