They say “cash is king” and for good reason. A profitable business can still fail if it runs out of cash. Whether you’re a startup or a well-established Oxfordshire SME, keeping a close eye on your cash flow is critical to staying healthy and growing.

At Modus Accountants, we help businesses understand, monitor, and improve their cash flow giving owners the confidence to plan ahead.

1. What Is Cash Flow?

Cash flow is simply the movement of money in and out of your business.

Cash inflows: customer payments, investments, loans.

Cash outflows: wages, supplier payments, rent, tax bills.

Positive cash flow = more money coming in than going out.
Negative cash flow = your business is spending more than it earns.

2. Why Cash Flow Matters More Than Profit

Profit is a snapshot, but cash flow is the day-to-day reality.

You can show a profit on paper, but if customers delay paying invoices, you may struggle to cover wages or bills.

Good cash flow management means you can seize opportunities (new staff, equipment, expansion).

3. Common Cash Flow Problems

Late customer payments.

Seasonal fluctuations.

Overtrading (growing too fast without the cash to fund it).

Poor expense management.

Lack of cash flow forecasting.

4. How to Improve Cash Flow

Invoice quickly and clearly – the faster you bill, the faster you get paid.

Set payment terms – encourage customers to pay on time.

Forecast regularly – know what’s coming in and going out.

Build a cash buffer – set aside funds for emergencies.

Review costs – cut unnecessary expenses.

5. How Modus Helps SMEs in Oxfordshire

We support businesses across Witney, Oxford, Bicester, and beyond with:

• Cash flow forecasting and reporting.
• Credit control systems to reduce late payments.
• Advice on funding and finance options.
• Ongoing support to improve profitability and stability.

FAQs – Cash Flow

Q: How often should I do a cash flow forecast?
Monthly is ideal for SMEs, but more often if your business is seasonal or growing quickly.

Q: Can software help?
Yes — Xero, QuickBooks, and other platforms offer real-time forecasting. We’ll help you set it up.

Q: What if I already have negative cash flow?
Don’t panic — we can help identify the cause and create a turnaround plan.

Next Steps

If you want to get in control of your cash flow and plan for a stronger future, we’re here to help.

📞 Call us today on 01993 225030 or 📧 hello@modus-accountants.co.uk to book your free cash flow review.