Cash Flow Management — Best Practices for Growth

Cash flow is the lifeline of any company. Strong cash management reduces borrowing costs and helps you take advantage of growth opportunities.

Key practices

• Monitor receivables: send invoices promptly and follow up with late payers.
• Negotiate supplier terms: extend payables where possible without harming relationships.
• Maintain a cash reserve: keep 1–3 months of operating expenses as a buffer.
• Forecast regularly: build weekly and monthly cash flow forecasts, and update them with real data.

Tools & techniques

• Use accounting software with cash-flow projections.
• Implement automatic payment reminders and early-payment discounts.

Bottom line: Proper cash flow management stabilizes operations and funds expansion without excessive debt.