Roger Boghani

7 Easy Steps to Manage Your Short-Term Cash Flow Effectively


Effectively handling cash flow is necessary for business owners, serving as a vital safety net rather than just a strategic move. The ups and downs in cash levels don’t just impact daily decisions; they significantly influence a business’s overall success or setbacks. A strong command of cash flow management is essential for navigating the unpredictable business environment.

It’s not just about theoretical profits on paper; it’s the actual cash in hand that boosts a business’s resilience. Whether it’s covering immediate expenses or seizing unforeseen opportunities, the status of your cash guides daily choices. In this article, we’ll explore essential steps that business owners can take to master the art of controlling their short-term cash flow effectively.

Understanding Short-Term Cash Flow

Before we get into the steps, let’s make sure we understand what we mean by short-term cash flow. It’s like the financial heartbeat of your business for the next 45 to 90 days—a delicate dance between the money coming in and the bills going out.

Even if your business is making a profit, it can fall apart if you don’t handle your cash flow carefully. There’s a big risk of failure, so it’s obvious that success is not just about making money, but also being smart about how you manage it.

7 Steps to Control Short-Term Cash Flow

1. Reviewing outstanding sales invoices

The first step is understanding what’s owed to you. Review outstanding invoices and estimate when you expect to receive the cash. This sets the stage for a clearer financial picture.

2. Assessing work in progress and expected completion

Take stock of ongoing projects and estimate when you’ll receive payment. This step is crucial for service-oriented businesses where work completion precedes payment.

3. Reviewing supplier bills and estimated payment dates

Equally important is managing what you owe. Review all supplier bills and estimate when you need to make payments, ensuring alignment with your cash flow.

4. Evaluating upcoming tax obligations

Taxes are unavoidable, but their timing isn’t. Review upcoming BAS and IAS requirements, estimating when you’ll need to make those payments to avoid surprises.

5. Managing super obligations and payment timelines

Employee welfare is non-negotiable. Review your super obligations and estimate when you’ll need to pay super for the last quarter, ensuring compliance.

6. Planning the wages schedule for the next 45 to 90 days

Your team depends on timely pay. Review your wage schedule and estimate pay runs for the next 45 to 90 days, assuming a stable work environment.

7. Analysing other cash outflows like rent and utilities

Don’t overlook fixed expenses. Review all other cash outflows, such as rent and utilities, and make informed estimates for the next 45 to 90 days.

Impactful Decision-Making Through Clarity

By carefully following these steps, you get a clear picture of how much money you’ll have soon. This clear picture is like a powerful tool that helps you make important decisions. If it looks like you might not have much cash, you can focus on getting the money you’re owed from invoices or talk to suppliers about more flexible payment terms. Making smart decisions ahead of time can make a big impact.

Real-Time Cashflow Planning Tools

Thanks to technology, we now have tools that help us plan our cash flow in real time. One of these tools is float, a cash flow planning software that works in the cloud. It’s a game-changer because it’s easy to use and gives us really helpful insights.

Seeking Assistance for Cashflow Forecasting

Cashflow forecasting can be complicated. If you want to make sure you’re managing your money accurately and efficiently, think about getting help from professionals. If you’re interested in how cash flow forecasting can help your business, reach out to our office for a free consultation. It’s a chance to learn more without any obligations.


In conclusion, where change is constant, being proactive about managing your cash flow isn’t just a nice thing to have: it’s a must. It’s like steering your ship carefully through rough waters. Whether you’re looking at your invoices or using tools like float in real-time, each step helps make your business’s financial foundation stronger. So, take control of your short-term cash flow to sail through the uncertain journey of entrepreneurship.


1. How often should I review my cash flow?

Regularly reviewing your cash flow is essential, ideally on a weekly or biweekly basis. This frequency ensures you stay proactive and can address any issues promptly.

2. Can cash flow forecasting prevent business failure?

Yes, proactive cash flow forecasting can significantly reduce the risk of business failure. It allows you to anticipate challenges and make informed decisions to mitigate them.

3. Why is a cloud-based cash flow planning tool recommended?

Cloud-based tools like Float provide real-time data access, collaborative features, and user-friendly interfaces, making cash flow planning more efficient and accessible.

4. What steps can I take if my cash flow is forecast to be poor?

If your cash flow forecast indicates challenges, consider negotiating flexible terms with suppliers, accelerating receivables, or exploring financing options to bridge gaps.

5. Is an obligation-free consultation free?

Absolutely. Our obligation-free consultation is an opportunity for you to discuss your needs and explore how our expertise can benefit your business without any financial commitment.

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