There’s a well-known phrase in business: “cash is king.”
And it’s true.
Even profitable businesses can run into trouble if cash isn’t managed properly. Having a healthy cash position gives you the flexibility to pay suppliers, cover wages, invest in growth, and handle unexpected costs without stress.
At Bidwell Accountancy, Milton Keynes, we regularly work with business owners who are profitable on paper but still feel the pressure of tight cashflow. The good news? With the right systems and advice in place, cashflow can be controlled and improved.
Here are five practical ways to keep your business cashflow on track 👇
đź“Š 1. Prepare a Cashflow Forecast (Not Just Accounts)
One of the most powerful tools for any business is a cashflow forecast.
This isn’t just about looking at historical numbers — it’s about planning ahead.
A well-prepared forecast helps you:
Identify periods where cash might be tight
Plan for VAT bills, tax payments, and seasonal dips
Make confident decisions about hiring or investing
We typically recommend monthly or quarterly forecasts, reviewed regularly against actual performance.
👉 At Bidwell Accountancy, we use cloud software like Xero, Float and Syft to give clients real-time cashflow visibility.
đź’Ľ 2. Understand Your Funding Options
Ideally, your business generates enough cash to fund itself — but in reality, that’s not always the case.
That’s why it’s important to understand your funding options, including:
Business loans
Overdraft facilities
Asset finance
Invoice financing
Government grants
Angel investment
The key is choosing the right type of funding for your situation, not just the quickest.
👉 We regularly support Milton Keynes businesses in securing funding and preparing forecasts to support applications.
⏱️ 3. Get Paid Faster (This Is a Big One)
Late payments are one of the biggest causes of cashflow pressure.
If your current terms are 30+ days, you could be unintentionally financing your customers.
Simple improvements can make a big difference:
Shorten payment terms where possible
Send invoices immediately
Use automated payment reminders
Offer small early payment discounts
Clearly state late payment terms on invoices
👉 Many of our clients also use direct debit systems (like GoCardless and Adfin) to dramatically improve cash collection.
🤝 4. Manage Supplier Payment Terms
Cashflow isn’t just about money coming in — it’s also about when money goes out.
Review your supplier agreements:
Can you negotiate longer payment terms?
Are there early payment discounts worth taking?
Can you align payments with your income cycle?
The goal is to smooth your cashflow, not create unnecessary pressure.
📦 5. Review Your Stock and Work in Progress
For many businesses, cash is tied up in stock or unfinished work.
Holding too much stock can:
Reduce available cash
Increase storage costs
Lead to waste or obsolescence
A regular review helps ensure you:
Hold the right level of stock
Avoid over-ordering
Free up cash to reinvest in the business
🚀 Keep Control of Your Cashflow (Don’t Let It Control You)
Strong cashflow doesn’t happen by accident — it comes from planning, systems, and regular review.
Whether you’re:
A startup in Milton Keynes
An established limited company
Or a growing SME looking to scale
Getting your cashflow right is one of the most important things you can do for your business.
🤝 Need Help with Your Cashflow?
At Bidwell Accountancy, we go beyond compliance — we help you understand your numbers and make better decisions.
We can support you with:
Cashflow forecasting
Management accounts
Funding support
Cloud accounting systems (Xero, Dext, Syft)
Ongoing business advice
đź“Ť Based in Milton Keynes, we work with businesses across Buckinghamshire and beyond.
👉 Get in touch today for a tailored cashflow review and see how we can help your business grow.
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