How to Improve Cashflow without Cutting Staff.

• Many Irish SMEs are facing rising costs, delayed payments, and tighter margins in 2025.
• Cutting staff might seem like the quickest fix — but it’s not always the smartest.
• In this post, we’ll explore practical, often-overlooked ways to improve cash flow without losing your team or sacrificing service quality.

CTA: “If you’re struggling with cash flow, talk to our advisory team — we can help you build a plan that works for your business.”

1. Review and Improve Payment Terms

Tip: Get paid faster — without chasing.

• Offer early payment incentives (e.g. 2% off if paid within 10 days).
• Shorten your standard payment terms if they’re too generous (e.g. from 60 days to 30).
• Automate invoicing to send reminders before the due date.
• Include late payment interest (as per Irish Prompt Payment legislation).

Stat: Over €3 billion is tied up in late payments across Irish SMEs each year.

2. Tighten Credit Control

Tip: Be selective about who you extend credit to.

• Run credit checks on new clients.
• Set clear credit limits.
• Follow up promptly when invoices are overdue.
• Consider factoring or invoice finance (explain simply).

Pro insight: “If 10% of your clients regularly pay late, they may be costing you more than they’re worth.”

3. Audit Your Costs (Without Slashing Staff)

Tip: Focus on non-core or underused expenses first.

• Subscription creep — software, tools you’re no longer using.
• Insurance policies — when was the last review?
• Energy costs — can switching suppliers or time-of-use adjustments help?
• Supplier renegotiation — even 5% discounts make a difference.

“Often, cash flow gaps come from inefficient spending, not lack of sales.”

4. Review Pricing & Margins

Tip: Undercharging is a silent killer of cash flow.

• When was your last pricing review?
• Are you charging enough to reflect increased costs in 2025 (labour, insurance, rent)?
• Can you bundle services or offer value-based pricing?

Example: “A client increased their prices by just 7%, and freed up €2,000/month in working capital — with no customer loss.”

5. Build a Rolling Cash Flow Forecast

Tip: Visibility = control.

• 3–6 month rolling forecast using Xero, Surf, Sage, etc.
• Plan for VAT bills, seasonal dips, tax due dates.
• Helps avoid emergency borrowing or last-minute staff cuts.