In our recent survey of Australian business leaders, 57% said cash flow management was the biggest challenge they face when trying to raise capital. It ranked well above investor interest or other funding barriers.
That figure doesn’t just highlight a financial concern, it shows how many businesses are stuck trying to grow without a clear handle on their day-to-day finances.
And while over half of businesses recognise that cash flow is a major pressure point, only 37.5% said they see cash flow forecasting as “very important”. A quarter of businesses sat neutral on the issue. That mismatch is worth paying attention to.
Why cash flow still causes problems
When cash is tight, everything gets harder.
It delays hiring, puts off investments, strains supplier relationships, and introduces unnecessary stress. And in 2025, with higher interest rates and slower payments still common, those delays can quickly snowball into something more serious.
Managing cash flow is about knowing what’s coming in, what’s going out, and when – it’s not just about watching the bank balance. It’s also about building in enough of a buffer to avoid the constant cycle of reacting to shortfalls.
Where most businesses go wrong
Plenty of business owners track sales and expenses but don’t plan for the timing gap between earning money and receiving it. Others lump cash flow into “general finance stuff” and don’t treat it as its own area to improve and manage well.
Here are some of the most common gaps:
- No regular forecasting
- Over-reliance on credit cards or short-term loans
- Little or no planning for tax or super obligations
- Assuming growth will fix the problem
It’s easy to fall into these habits, especially when you’re stretched thin and trying to juggle everything at once. But without cash clarity, growth tends to stall, or worse, unravel.
A better way to handle it
Fixing cash flow doesn’t have to be overwhelming. You don’t need complicated software or a finance degree to get started. But you do need structure.
Here are a few small changes that make a big difference:
- Build a simple 3-month forecast using expected income and key expenses
- Track not just what you’re owed, but when you’ll be paid
- Plan for slower months, tax due dates, and one-off costs
- Revisit the forecast regularly, not just at the end of the quarter
- Set alerts for overdue invoices and recurring payments
A basic forecast gives you a clear view of your cash movement. It helps you make confident decisions and avoid unnecessary stress when something unexpected happens.
Why it matters for growth
When you’re applying for funding, potential lenders and investors want to see that you understand your business finances. It’s more than profit and revenue, it’s about the practical reality of your cash position.
Businesses that can show a consistent cash flow history, clear forecasting, and a plan for managing dips are far more likely to secure capital and scale confidently.
Fundamentally, good cash flow management builds credibility. It also gives you the breathing room to say yes to opportunities instead of constantly playing catch-up. Those who aren’t in that position, often miss out.
Fix it before it becomes a problem
Whether you’re preparing for growth or just want to feel more in control of your finances, taking a closer look at your cash flow is one of the smartest steps you can take.
At Vital Addition, we work with businesses across Australia to review cash flow, simplify forecasting, and create better financial systems, so you can plan with confidence, not guesswork.
Talk to us today and start making your numbers work for your goals.