Cash flow is the lifeblood of any business, yet it’s one of the most overlooked aspects of financial management. For UK businesses—whether startups in London or established firms in the Midlands—poor cash flow can spell disaster. Here are five common mistakes we see at CommerceControl and practical ways to address them.

1. Ignoring Seasonal Trends
   Many businesses fail to plan for quieter months, like post-Christmas slumps. Without a buffer, bills pile up fast.
   Fix: Analyse past sales data and build a cash reserve during peak seasons to cover lean times.
2. Overstocking Inventory
   Tying up cash in unsold stock is a classic error, especially for retailers.
   Fix: Use demand forecasting tools and order smarter—less stock, more often—to keep cash flowing.
3. Late Invoicing
   Delaying invoices means delaying payments, which squeezes your cash reserves.
   Fix: Set up automated invoicing systems and enforce clear payment terms (e.g., 30 days).
4. Neglecting Expenses
   Small, unchecked costs—like subscriptions or utilities—add up and drain your funds.
   Fix: Conduct a monthly expense audit to cut unnecessary spending.
5. No Emergency Plan
   Unexpected events (hello, supply chain disruptions!) can derail cash flow without a backup.
   Fix: Maintain a contingency fund—aim for 3-6 months of operating costs.

At CommerceControl, we’ve helped countless UK businesses turn cash flow chaos into stability. Want tailored advice? Get in touch with our team today.