Managing cash flow can be one of the most challenging aspects of running a small business. Controller onDemand recently started working with a small business who was struggling immensely with this task. On most occasions they could not meet payroll and had to delay it a few days or even up to a week. COD came to the rescue. After instituting a cash flow management plan immediately their payroll has been paid on time, every time.


“Never take your eyes off the cash flow because it is the lifeblood of your business” — Richard Branson.


Here are 4 easy steps to managing cash flow.

  1. Pay your bills one day per week. Look at what is due and pay accordingly based on what your cash allows you to pay. Containing bill payment to 1 day per week lets you look at the whole picture objectively and see what is most important.
  2. Open a line of credit. If you have payroll you should have a line of credit. I recommend that any business who has payroll has a line of credit as a backup. One thing you must always pay is your payroll. You cannot miss payroll.
  3. Keep some cash in reserves. If you do not have a line of credit as a backup to cover your payroll demands, make sure you keep some cash in reserves after paying your bills to be able to meet your following week payroll demands.
  4. Look at your receivables. Can you nudge anyone who is past due to pay their outstanding invoice? Gentle reminders and/or statements can sometimes bring in more cash. Also review customer paying habits to predict what checks/payments will arrive next week.

Or let Controller onDemand create a cash flow plan for your company.