Cash flow management: Taking action to address payables and receivables

Read Time: 3 Min
As companies grow, cash flow management becomes more challenging.
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Roughly 60% of small business owners surveyed say that cash flow has been a problem for their business†.

The ability to effectively manage payables and receivables is key to maintaining an appropriate cash flow. Unfortunately, nearly half of surveyed small-to-medium-sized businesses confirmed that late payments are a problem–and one that appears to be growing‡.

Tips to help manage payables and receivables

  • Develop a realistic cash-flow budget and calendar based on how much money is being paid out and when, as well as how much money is expected to come in.
  • Automate your accounts receivables program to issue and track invoices more quickly, identify problems early, and minimize errors.
  • Implement an ACH electronic payment system to expedite customer payments.
  • Invest in electronic payment systems to help eliminate the added time, costs, and potential fraud associated with paper payments.

Are you ready to address cash flow challenges

Huntington can help. Our team of professionals has worked with businesses facing cash flow challenges. We can work with you to identify solutions to address your payables and receivables and help ensure the ongoing financial health of your business. Connect with the business banking team at Huntington to discover the many ways we can help you grow and strengthen your business.

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Maintaining good cash flow is key to keeping a business afloat and profitable. In fact, 82% of business failures in 2019 were due to poor cash management†.
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† Small business payments and cash flow in 2021: How to manage money in the post-pandemic economy. Intuit. May 27, 2021.  

‡ Anderson, Doug. 2021. As Trade Volumes Increase, Survey Indicates U.S. Suppliers Are Cautiously Optimistic. Survey, Tradeshift. Accessed July 2021.  

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