If your business feels profitable on paper but cash is always tight, the problem is rarely “sales.” More often, it is the back office. Bills are piling up, invoices are going out late, follow-ups are inconsistent, and no one has a clear view of what is due, what is overdue, and what is actually safe to spend.
This blog is a practical guide to tightening your financial workflow so you can stop reacting and start controlling cash flow. You will learn how to structure your payables and receivables, how to build repeatable processes, what to track weekly, and how to avoid the common mistakes that quietly drain time and money.
Why cash flow problems usually start behind the scenes
Cash flow is not just a finance issue. It is a process issue.
You can lose cash flow control when:
- Supplier bills are not logged as soon as they arrive
- Payments are made without checking what is due next
- Customer invoices go out late or with errors
- No one is assigned ownership for follow-ups
- Reporting is delayed or unreliable
- You cannot see upcoming liabilities clearly
When processes are unclear, money leaks through delays, missed follow-ups, late fees, and decision-making without real data.
The difference between “busy” finance work and effective finance work
Many businesses do lots of admin but still feel out of control. That usually means the work is happening, but not in a structured way.
Effective finance operations have:
- Clear roles and responsibilities
- A consistent weekly rhythm
- Simple approval rules
- A clean audit trail
- Reporting that is easy to trust
When these are in place, you spend less time “fixing issues” and more time improving the system.
Your payables process is how you protect cash, maintain supplier relationships, and avoid surprises. accounts payable is not just “paying bills.” It is making sure every bill is valid, coded correctly, approved properly, and paid at the right time.
A strong payables system includes:
1) Capture every bill quickly
The biggest issue is not the bill itself. It is the delay. If bills are sitting in emails, your cash forecast is wrong.
Good practice:
- Centralise bill collection (one inbox or system)
- Log bills weekly, not monthly
- Attach supporting documents (quotes, delivery notes, agreements)
2) Validate and code accurately
Errors here create problems later, especially when reporting or planning.
Good practice:
- Confirm supplier, amount, and due date
- Ensure GST treatment is correct
- Use consistent coding so reports mean something
3) Use a simple approval process
Approvals do not need to be complicated. They need to be consistent.
Good practice:
- Set spending thresholds
- Require sign-off for new suppliers
- Track who approved and when
4) Pay with intention, not panic
Payables should support cash flow, not destroy it.
Good practice:
- Pay according to due dates and cash position
- Avoid paying early unless there is a benefit
- Schedule payments weekly instead of random daily payments
What to review weekly
- Bills due in the next 7 days
- Bills due in the next 30 days
- Any overdue bills and why
- Any supplier disputes to resolve
When payables are structured, cash flow becomes predictable.
As businesses grow, payables become too detailed for owners or managers to handle casually. This is where an accounts payable assistant can add serious value. The role is not just admin support. It is process support.
An effective accounts payable assistant can:
- Collect and log bills consistently
- Follow up missing documents from suppliers
- Prepare bills for approval and payment runs
- Maintain clean records and attachments
- Flag unusual charges, duplicates, or incorrect amounts
- Help keep reporting accurate by ensuring coding consistency
What makes a good payables assistant (in real life)
Look for someone who is:
- Detail-focused and calm under deadlines
- Comfortable following a documented process
- Confident to ask questions when something looks wrong
- Reliable with timelines and data accuracy
A simple weekly workflow for payables
- Monday: capture and enter all bills
- Tuesday: confirm coding and prepare approvals
- Wednesday: approvals completed, questions resolved
- Thursday: payment run scheduled
- Friday: reconcile and update reporting
This rhythm prevents “last-minute chaos” and makes cash planning easier.
About KwikBooks
KwikBooks is a UK-focused bookkeeping partner built for busy small and medium-sized businesses that want clarity, control, and up-to-date financial records without the stress. Through kwikbooks, businesses can explore practical bookkeeping support designed to keep reconciliations clean, invoices organised, and reporting easy to understand, so owners can make decisions with confidence. KwikBooks prioritises reliable processes, clear communication, and consistent monthly workflows that help businesses stay on top of cash flow and day-to-day financial operations.
Receivables are not just about sending invoices. They are about collecting cash in a predictable way. accounts receivable is one of the fastest levers you can pull to improve cash flow without increasing sales.
A strong receivables system includes:
1) Invoice quickly and accurately
Late invoicing equals delayed cash. Invoicing errors also slow payment.
Good practice:
- Invoice immediately after delivery (or milestone completion)
- Use clear descriptions so customers do not dispute charges
- Include payment terms and accepted payment methods
- Make it easy to pay (online link where possible)
2) Standardise follow-ups
Many businesses avoid follow-ups because it feels awkward. But professional follow-up is normal and expected.
Good practice:
- Automated reminder before due date
- Reminder 1: 1–3 days overdue
- Reminder 2: 7 days overdue
- Escalation: 14+ days overdue with a clear next step
Consistency matters more than tone. The goal is not pressure. The goal is clarity.
3) Track aged receivables weekly
If you are not looking at ageing, you are not in control.
Track:
- Current (not yet due)
- 1–30 days overdue
- 31–60 days overdue
- 61–90+ days overdue
The longer a debt sits, the harder it becomes to collect. Weekly review prevents the backlog from growing.
4) Handle disputes quickly
Disputes are a normal part of business. The mistake is letting them sit.
Good practice:
- Assign responsibility for resolving disputes
- Set a timeline for response
- Fix invoice issues immediately and resend
Fast resolution protects relationships and cash flow.
The most common mistakes that hurt both payables and receivables
These issues show up in almost every growing business:
- No single owner for the process
- Invoices sent late or inconsistently
- Paying bills without checking cash forecast
- No documented approval rules
- Poor filing and missing attachments
- Relying on memory instead of a system
- Not reconciling accounts regularly
When these are fixed, financial stress reduces quickly.
KPIs that keep your cash flow honest
You do not need dozens of metrics. A few KPIs are enough.
Receivables KPIs
- Days Sales Outstanding (DSO) trend
- Percentage of invoices overdue
- Amount in 30+ day bucket
Payables KPIs
- Bills overdue and why
- Average time from bill received to entered
- Payment run consistency (weekly, fortnightly)
Overall cash flow KPI
- Cash runway (how long cash lasts at current burn)
- Forecast variance (planned vs actual)
These indicators help you spot issues early rather than reacting late.
How to improve cash flow without being “more aggressive”
You can improve collections without damaging relationships by focusing on clarity and systems.
Try:
- Better invoice descriptions and stronger terms
- Early reminders and clear due dates
- Payment links and multiple payment options
- Clear dispute process and fast response
- Setting expectations at the start of a job
Professional businesses follow up. It is normal. The goal is to reduce confusion and delay.
A practical 30-day improvement plan
If your back office feels messy, this plan gives you structure quickly.
Week 1: Stabilise
- Centralise bills and invoices
- Assign ownership for payables and receivables
- Set weekly review time (same day each week)
Week 2: Standardise
- Create an invoice checklist
- Create a bill approval checklist
- Set reminder schedule for overdue invoices
Week 3: Improve visibility
- Build a simple cash forecast
- Review aged receivables weekly
- Review upcoming payables weekly
Week 4: Tighten and automate
- Use recurring invoices where appropriate
- Automate reminders
- Implement a consistent payment run
By day 30, you should feel more control, fewer surprises, and better cash predictability.
Conclusion
Cash flow improves when your back office runs on routine, not urgency. When payables are captured and scheduled properly, receivables are invoiced and followed up consistently, and responsibilities are clear, your business becomes easier to manage. You spend less time chasing, less time guessing, and more time making decisions with confidence.
The goal is not perfection. The goal is a system you can repeat every week, even when the business gets busy.
