Whether you’re running a growing small business, managing a family budget, or navigating the ups and downs of a side hustle—cash flow is your financial oxygen.
You may have seen it in the news or felt it yourself: businesses with promising revenue still go under simply because they run out of cash. According to recent insights from EY and NAB, the urgency to manage cash flow has never been greater—with inflation, interest rates, and market uncertainty adding more pressure to already tight margins.
So what does smart cash flow management look like in 2025? And how can you make sure you’re doing it right?
Let’s break it down.
💸 What Is Cash Flow Management?
Cash flow management is the process of tracking how much money is coming in and going out of your business or household—and making sure you have enough to meet your short-term obligations and long-term goals.
It’s not just about budgeting—it’s about planning for liquidity, anticipating future needs, and staying nimble in a changing environment.
In short: even profitable businesses fail if they run out of cash. That’s why managing it proactively is so critical.
🚩 Why Poor Cash Flow Is One of the Top Business Killers
You could be selling more than ever, but if customer payments are delayed, expenses are rising, or inventory is overstocked, your cash position can quickly turn negative.
Common symptoms of poor cash flow:
- Constantly chasing overdue invoices
- Relying heavily on credit cards or short-term loans
- Inability to pay suppliers or staff on time
- Missed opportunities for growth due to lack of liquidity
If any of those hit close to home, it’s time to prioritise your cash flow strategy.
✅ The Benefits of Strong Cash Flow Management
When managed well, cash flow becomes a growth enabler, not a stress factor.
Here’s what good cash flow unlocks for you:
1. Day-to-day stability
You can cover payroll, bills, and operational costs without panic or delay.
2. Confidence in planning
Accurate forecasting helps you make decisions about hiring, expansion, or reinvestment with clarity.
3. Access to better finance
Lenders look favourably on businesses with consistent, positive cash flow.
4. Resilience in tough times
A healthy cash buffer lets you weather economic slowdowns, client losses, or supply chain shocks.
🔍 Why It’s Especially Crucial Now
According to EY, cash forecasting has become both harder and more urgent than ever due to economic volatility, changing consumer behaviours, and inflation pressures.
At the same time, NAB highlights that many Australian SMEs still rely on gut instinct or outdated spreadsheets to manage cash—which puts them at risk.
The good news? A few simple changes can go a long way.
💡 8 Practical Tips to Improve Your Cash Flow
Adapted from NAB’s business guide and years of client experience, here are 8 proven ways to take control:
- Track everything – Know exactly what’s coming in and going out
- Speed up receivables – Invoice promptly, follow up quickly
- Set up payment reminders – Encourage clients to pay on time
- Review subscriptions and expenses – Trim the fat regularly
- Renegotiate terms – Talk to suppliers about better payment schedules
- Forecast quarterly and annually – Know your low and high seasons
- Build a buffer – Aim for at least 3 months of operating expenses
Use tools – Leverage accounting software like Xero or MYOB for real-time tracking
👩💼 Cash Flow and the Role of Professional Advice
Here’s the truth: even seasoned business owners sometimes struggle with cash flow because of how many moving parts there are.
That’s where professional advice can be a game-changer.
A financial adviser or accountant can help you:
- Identify hidden inefficiencies
- Build reliable forecasts based on your business cycles
- Prepare for tax events and avoid nasty surprises
- Develop a strategy for reinvestment or debt repayment
- Make informed decisions—not emotional ones—about spending
🎯 Good cash flow advice doesn’t just help you survive—it helps you grow with confidence.
Final Thoughts: Don’t Let Cash Flow Catch You Off Guard
It doesn’t matter whether you’re a startup founder, a freelancer, or a seasoned entrepreneur—cash flow is the single biggest factor that keeps your financial engine running.
Start small, get clear, and build from there. The more visibility and control you have, the better positioned you’ll be to seize opportunities (and avoid crisis).
👉 Want help getting your cash flow strategy sorted? Talk to a financial professional today.
🔗 Sources & Further Reading:
- EY: Why cash forecasting is more urgent than ever
- NAB: 8 simple tips to take charge of your cash flow
- ASIC: MoneySmart – Budgeting and Cash Flow
Any discussion in this article does not take into account your objectives, financial situation or needs. Before acting on it, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.