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How to fix cashflow problems before they sink your business

For many Warrington business owners, it’s not profit that keeps them up at night — it’s cash flow.

Even profitable businesses can run into serious trouble if the cash isn’t there to pay suppliers, wages, or HMRC.

cash flow issues for small business

If your business is facing delayed payments, shortfalls, or increasing stress at month-end, now is the time to act.


Here’s how to spot the warning signs — and what to do next to protect your business.


1. Understand What’s Causing the Cashflow Problem

Cash flow problems usually come from one of these sources:

  • Clients taking too long to pay

  • Costs increasing faster than income

  • Too much money tied up in stock or unpaid invoices

  • Seasonal dips not being planned for


The first step is to track the numbers properly — not just bank balance, but cash in vs cash out over time.


2. Tighten Up How You Get Paid

Waiting 30+ days to get paid? That’s an interest-free loan to your customers — and it’s hurting your business.


What you can do:

  • Issue invoices promptly — and chase them immediately

  • Add clear payment terms (7 or 14 days, not 30 by default)

  • Use automation tools like GoCardless, Stripe or Xero invoice reminders


Faster payments = stronger cash position.


3. Reduce Unnecessary Spending

When cash is tight, every pound matters. Review your monthly outgoings and identify:

  • Software you’re not using

  • Stock or materials sitting idle

  • Freelancers or contractors with unclear ROI


This isn’t about slashing — it’s about being strategic.


4. Get a Realistic Cash Flow Forecast

A 12-month rolling cash flow forecast gives you visibility over what’s coming — and allows you to take action before there’s a problem.


Ask your accountant to help with:

  • Monthly income and expense forecasting

  • Tax and VAT payment planning

  • Scenario testing (e.g. new hire, slow sales)


This kind of forecasting is available to you by Purple Accounts’ advisory support.


5. Build a Buffer for Lean Months

If you’ve had cashflow problems before, don’t just fix the symptom — build in a solution.

  • Save 1–3 months’ worth of core costs in a separate business savings account

  • Use surpluses in good months to build your buffer

  • If needed, talk to your accountant about credit facilities that don’t cost unless used


6. Get Support Early with cashflow

The worst cashflow problems happen when you ignore the early signs.

If you're:

  • Regularly dipping into your overdraft

  • Waiting on clients to pay before you pay others

  • Worrying about HMRC payments


You need help — and fast. The earlier we intervene, the more options you have.


Purple Accounts helps businesses in Warrington to plan, stabilise and rebuild their cashflow — with support that goes far beyond tax returns.


Cash flow problems can feel overwhelming — but they’re usually fixable, especially if caught early.


With the right systems, tools and advice, you can move from cash panic to cash control.


Let’s start with a quick chat about your business and see how Purple Accounts Warrington can help you.



 
 
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