Lack of cash flow is one of the biggest threats to businesses trying to scale.
Why? Because, for fast-growth businesses, success often brings a new set of challenges. While revenue may be rising, so too are your costs, commitments and the complexity of your operations.
As you grow, the gap between money in and money out can widen, which is why managing cash flow proactively is crucial. Even profitable businesses can struggle to stay afloat if they don’t have the cash available to cover day-to-day operations.
In this month’s Scale Monthly, we highlight three core areas to focus on to keep cash flow healthy and provide three action points to keep your business on track as you grow.
1. Forecast regularly (and realistically)
Cash flow forecasting isn’t just a finance exercise – it’s a strategic growth tool. With forecasting tools like Futrli, you can:
- Run real-time cash flow projections, updated as your numbers change.
- Model different growth scenarios (e.g. hiring, investment or new client wins).
- Understand when cash will be tight, and plan accordingly.
Action point: Build a rolling 13-week forecast that updates weekly. It gives you a constant forward-looking view without feeling out of date.
2. Automate where it counts
Manual processes slow you down and increase risk. Automation helps you improve visibility and move faster:
- Use cloud accounting tools (we predominantly work with Xero and FreeAgent) to get up-to-date financial data.
- Make the most of Xero’s invoice reminders and streamline your payment process with iwoca.
- Sync your finance tools to reduce duplication and errors.
Action point: Automate your accounts receivable process to reduce debtor days and improve cash flow predictability.
3. Keep a close eye on costs
Growth often brings new spending, from hiring and marketing to tools and overheads. It’s easy to lose sight of what’s essential versus what’s excessive.
- Use expense management tools like Dext to track team spending.
- Categorise and review your biggest outgoings each month.
- Don’t be afraid to cut or renegotiate non-essential costs.
Action point: Build regular cost reviews into your month-end process to stay lean as you scale.
How we can help
At Harold Sharp, we specialise in helping ambitious businesses navigate growth challenges. From selecting the right tools to providing expert guidance, we’ll help you build the financial clarity and resilience you need to run your business smarter.
Contact James Turner on the below or complete our Contact Form for help with driving automation in your business.
James Turner
Accountant | Fast growth
0161 905 1616
jt@haroldsharp.co.uk