For small and medium-sized enterprises (SMEs) across Ireland, managing cashflow is one of the most challenging aspects of running a business. Owners without a simple forward view are blind to upcoming gaps and end up firefighting.  

This often leads to missed payments, strained relationships with suppliers, customers, and banks, as well as time spent chasing low-margin work for quick cash.  

So what’s the solution? Michelle Walshe, business advisor to SMEs, explains, “Cashflow management is twofold: it's about taking a proactive approach, using realistic projections to identify issues early while building the everyday disciplines across your team that keep you in control.” 

With these fundamental practices, as well as targeted cashflow support, you can improve your business's financial health and avoid some of the most common pitfalls. 

By putting a few simple steps into practice—alongside the right supports—you can strengthen your finances and avoid common cashflow problems. 

The first step to improving your cashflow is visibility. “Start with a full audit of your business's inflows and outflows,” says Walshe. A simple, weekly cashflow spreadsheet is a great place to start. 

“This means listing all the money coming in like payments from customers, or any loans, or grants and all the money going out, like wages, bills, and supplier costs.” 

Walshe also emphasises the importance of regular monitoring: “Start with a basic cashflow spreadsheet and keep it updated. The key is to always look forward.”  

This means adding new weeks or months to your forecast as you move through time, and constantly comparing what you predicted versus what actually happened. This helps you adjust for future weeks and ensures better accuracy. 

One of the most effective ways to improve cashflow is by speeding up invoicing and ensuring timely payment. “Invoicing should happen the moment a service or product is delivered,” Walshe says, advising businesses to adopt a daily invoicing routine.  

“Invoicing on the day of delivery minimises delays. And if you’re on a monthly billing cycle, issue invoices by the last day of the month.” 

Equally important is following up on payments. As the saying goes, ‘he who shouts loudest gets heard.’ 

“It’s important to start collecting your invoices the day after they’re due,” she says. “A lot of businesses skip this, but proactive collection is crucial. Setting up a routine for chasing overdue payments, whether that’s by email or phone calls, ensures the money is collected quickly.”  

One of the key challenges Walshe often sees in businesses is the disconnect between different departments or roles within the company, especially when it comes to cashflow management. 

“Say you're preparing for Christmas and decide to buy packaging early to ensure it arrives on time. But this puts a huge strain on cashflow by creating an additional demand on cash that the business can’t afford,” she says. 

“It’s vital that the purchasing team works closely with the cashflow team to assess what is truly necessary and when it needs to be purchased.” 

She also recommends clearly defining who has the authority to approve purchases: “Who’s responsible for signing off on purchase orders? Once a purchase order is signed, the business is committed, and the clock starts ticking on the invoice. It’s too late once the invoice arrives and this is where many businesses get caught off guard.” 

When it comes to managing cashflow, Walshe recommends using simple tools like Excel for cashflow. There are also various accounting software options that automatically generate and send invoices as soon as a product is shipped. These systems can also follow up on overdue payments, sending reminders, and providing direct links for payment. 

With the Digital for Business Programme, a consultant can analyse your business needs and suggest the best tools and software, while also advising you on grants like the Grow Digital Voucher that can go towards the cost.  

There are many government grants and funding options available to help businesses improve their cashflow.  

“Grants are a form of funding that can really support your business,” Walshe says. “Whether it’s funding for digitalisation or assistance with hiring, grants can give your cashflow the boost it needs.” 

MicroFinance Ireland has various low-cost loans, with even lower rates if you apply through your Local Enterprise Office. Meanwhile the SBCI Invoice Financing gives you a cash advance on outstanding invoices which can be helpful when a customer is taking a long time to settle an invoice or if the business is experiencing seasonal slow periods. 

Give one of our expert advisors a call or email today and we chat through your business goals and challenges, and advise you on what support might be best for your business.