logo Login


Information presented in the MutualBank Resource Center is provided for educational purposes only. MutualBank makes no representations as to the accuracy, completeness, or specific suitability of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. MutualBank recommends you consult a professional for any specific guidance you are seeking.

Business Resources

Understanding, Managing, and Improving Cash Flow

By Kathy Sears
VP, Commercial Banking Officer

Managing your cash flow is one of the most important, yet challenging tasks for any small business owner. It is the life-blood of your organization; it enables you to pay salaries, make investments, and purchase product.

Tips to Improve Your Business' Cash Flow

  1. Keep track of your cash with a good software program.
    Understand how your cash flows in and out of your organization. Are you allowing customers to pay in 60 days when you are required to pay your suppliers in 30? You may be creating a gap.
  2. Have a good relationship with your lender.
    Build that connection before you are in need. Meet with your banker regularly and keep them informed of any upcoming purchases or needs.
  3. Have excess cash working for you.
    Look into interest-bearing accounts when possible.
  4. Stay on top of your receivables.
    Invoice quickly and make sure your customers understand your payment terms.


Back To Top

questionmark sign - Mutual BankNeed Help?