Cash Flow Management for South African Small Businesses: The Basics That Most Owners Skip
Most small business failures are cash flow failures, not sales failures. Learn the cash flow basics South African SMB owners most commonly skip — and how to fix them.
Profitable businesses go broke all the time
You can be profitable on paper and still run out of cash. Revenue is not the same as cash. Profit is not the same as cash in the bank.
The most common cash flow mistakes South African SMBs make
1. Not tracking what's actually owed to you
You need an exact figure broken down by age (30 days, 60 days, 90+ days) and by client — an accounts receivable aging report. Without it, you're flying blind.
2. Net-30 terms as the default
There's nothing stopping you from offering net-7 or net-15 terms. Shorter terms mean faster cash.
3. No deposit policy
Starting a project without a deposit means you're financing your client's work for them. A 50% upfront deposit is standard in most service industries.
4. Mixing business and personal finances
If business money flows in and out of your personal account, you have no visibility into cash flow. A separate business account is essential — not optional.
5. No cash flow forecast
A 12-week projection of money coming in and going out lets you see problems before they become crises.
The fastest lever: get your invoices paid sooner
- Invoice immediately on project completion (not at month end)
- Send invoices to a portal rather than as email attachments
- Set up automatic payment reminders at 7 days, due date, and 7 days overdue
- Follow up personally for any invoice over 14 days late
Talk to us about how MyGenesis helps service businesses track outstanding invoices and get paid faster.