Your essential guide to reducing costs and improving cashflow

Solid financial management starts with good habits – track your numbers, stay organised, and plan ahead.

You don’t need to be an expert, but you do need to stay on top of your income, outgoings and forecasts. Use simple accounting software like Xero or QuickBooks to manage everyday finances, and set up a clear billing system to stay in control of cash coming in. Taking time each month to update your cashflow and profit and loss forecasts can help you spot issues early and adjust before they affect your bottom line.

Small savings also add up. Review your expenses regularly – do you really need that office, or could you lease equipment rather than buy it? Make smarter spending decisions to stretch your resources further.

And if things get tight, don’t panic. Look at how you can free up cash – sell unused assets, delay non-essential payments, or offer early payment deals to bring in money faster.

With the right systems in place, you’ll feel more confident in your decisions and better equipped to grow.

If you’re an UMi Sat Nav subscriber, you can get a Financial Health Check with a Business and Investment Adviser to help you improve your business’s finances.

Your cashflow forecast is more than a finance tool – it’s a way to make smarter decisions, especially in uncertain times.

Use it to check what’s affordable, when to borrow or repay, and whether it’s time to cut costs or push for more sales. Scenario planning can help you test different options and spot potential issues before they hit.

Look at what’s coming in and going out, and ask simple questions: Can we afford this right now? Should we offer or ask for credit? Is it time to change payment terms or drop underperforming products? The answers can help you focus your time and money where it matters most.

Find out how to use your cashflow forecast to make confident, well-informed business choices.

If you want to grow your business sustainably, you need a funding strategy that supports your big-picture goals.

Grants can be a great starting point – especially if you’re investing in innovation, sustainability or entering new markets. Our article on how to find, secure and use grant funding explains the types of grant funding available and how to apply successfully.

Loans and asset finance help you spread the cost of big purchases or manage seasonal dips in income. If you're not sure which type of finance is right for your situation, take a look at our article on the different types of business finance for a helpful overview.

And if you’re aiming for fast growth, equity investment could give you the capital and connections to scale quickly. Our article on how to prepare your business for investors outlines what investors are looking for and how to prepare.

The key is to match the right funding to the right purpose. Think about what you’re trying to achieve, when you’ll need the money, and how repayment (if any) fits into your longer-term cashflow plans.

If you’re an established business and you’d like support to find and apply for the right blend of funding, check out our Get Funding service.

A bit of forward planning can make a big difference to your tax bill, and your cashflow.

From bringing forward essential spending to making the most of capital allowances and loss reliefs, there are smart ways to reduce what you owe. Even how and when you take dividends, repay loans, or dispose of assets can impact your tax position, so it pays to plan ahead with your accountant.

If your business has been innovating in a way that develops your sector, you might also consider R&D Tax Credits – a chat with a specialist such as Amplifi Solutions will help you understand if you are eligible.

You don’t have to be a tax expert, just know what to look out for and where to get help.

Discover practical ways to reduce your tax liabilities before year end.

If you’re an UMi Sat Nav subscriber, you can also watch this webinar with Blu Sky on preparing for a new tax year.

If you haven’t done it already, start by updating your profit and loss and cashflow forecast – UMi Sat Nav subscribers can download templates. This will help you and any professional advisers get clarity and support your decision-making.

Once you have updated your figures, try to identify what is causing the problems.

Some prompts that might help you:

• Do you have late-paying customers?
• Are your payment or credit terms too generous, and you’re not getting cash in quickly enough?
• Are costs higher than you budgeted? If so, which costs are they?
• Are you charging enough on products/services to cover your costs and deliver a profit margin?
• Have you not hit forecasted sales targets?
• Are you delaying billing customers?
• Are refunds making money bounce back out?

Take action immediately on anything you can – for example chasing outstanding payments, getting up-to-date on your billing, and cancelling recurring charges for anything you’re not using.

If your projections show you are or will struggle to pay bills when they fall due, act quickly to give yourself the best chance of getting back on track. Speak with the companies you owe money to – many will be willing to offer some breathing space if you’re experiencing short-term cashflow issues. Speaking with an accountant, insolvency service or the free Business Debtline can also help with exploring your options for recovery.

If the problems aren’t immediate, you can use the sections below to get a plan in place to improve your financial resilience. What you do will depend on what’s causing the issues.

To go deeper on this topic, UMi Sat Nav subscribers can complete a Financial Health Check, and access the business resilience webinar and action plan template.

With energy prices high and pressure to hit Net Zero targets growing, even small energy-saving changes can make a big difference.

Start by getting clear on how much energy you're using and when – regular meter readings and reviewing your bills can reveal patterns and highlight where savings are possible. Then look for quick wins, like switching to LED lighting, adjusting thermostats, and encouraging staff to power down equipment when it’s not in use.

Over the longer term, you could switch to a renewable energy provider or invest in energy-efficient systems like heat pumps. You may be able to get funding to help with green projects. It’s also worth exploring whether hybrid working or smarter use of office space could reduce your heating and lighting needs.

Even low-cost changes can help reduce your bills, improve your carbon footprint, and protect your cashflow.

Find out how to make your business more energy efficient.

If you’re an UMi Sat Nav subscriber, you can access our cost of trading webinar series, which includes a session on reducing trading and energy costs.

Before you decide to increase your efforts to bring in more sales, check two things:

1. Is the cost of sales part of your cashflow problem? If you’re not charging enough to cover your cost of sales, or it’s taking too long to get money in while you’re paying out for materials, increasing sales won’t help you.
   
   
2. Can you service more sales effectively? If you’d need to hire more staff – or else there would be a detrimental effect on quality of service or your staff’s stress levels – this may not be the most helpful thing for you right now.

If you have capacity and the cost of sales is not part of the problem, then you can get creative with how you generate new business. Start by showing up consistently online – sharing helpful content, posting how-to videos, or engaging with others in your industry can build awareness and trust without costing a penny.

Strengthen your existing relationships too by reaching out to past customers and adding more value to your offer – even small extras can boost confidence and loyalty.

Local networking events and a bit of competitor research can also uncover fresh opportunities. You don’t need a big budget – just time, focus, and a willingness to do things differently.

Explore low-cost ways to grow your business and boost your sales.

If you’re an UMi Sat Nav subscriber, you can also watch our webinars on winning more customers and optimising customer acquisition to reduce cost of sales.

Late payments can damage your cashflow and hold back your business – so it pays to be proactive.

Start by tightening up your processes: set clear payment terms, make it easy to pay, and check customers’ credit. Build regular admin habits into your week so you spot problems early. If a payment is late, act quickly – send reminders, offer payment plans if needed, and escalate if things don’t improve.

You can’t prevent every delay, but preparing for the worst with backup finance, a cash buffer and support in place will make the impact easier to manage.

Find out more about taking control of late payments to protect your business’s financial health.

Offering credit can help you win more customers, but only if you stay in control.

Start by setting clear terms and choosing credit periods that work for your cashflow. Use credit checks and application forms to reduce risk, and invoice promptly once work is complete.

Follow up regularly with polite reminders and consider offering incentives for early payment. If a customer doesn’t pay, don’t be afraid to take further steps.

Tools like credit insurance and invoice finance can also help you manage the risks and keep cash flowing in.

Learn more about setting up an effective credit control process.

If you’re an UMi Sat Nav subscriber, you can also watch our webinar to help sharpen your negotiation skills if you need to discuss terms with your suppliers or customers.

If you need a working capital boost, some of the most accessible options include business overdrafts, credit cards, invoice finance, and short-term business loans. You might also consider leasing or hire purchase for essential equipment, so you can preserve your cash while still accessing the tools you need.

Each option comes with different risks and costs, so it’s worth understanding how they work before you commit. Lenders will do affordability checks, but it’s worth considering for yourself if you could still meet repayments if interest rates or other costs increase. You can use your cashflow forecast to help you run different scenarios.

A lender will expect to see evidence that you have strong sales performance, are controlling costs, and that any cashflow issues are temporary. If this isn’t the case, you may need to consider a recovery process instead.

Using finance smartly can work alongside other activities such as selling unused equipment and boosting your efforts to make more sales.

Read our full guide to business finance to explore the best options for managing short-term cashflow.

You may also like to watch our Get Funding webinar on working capital.

If you want to retain great employees without raising salaries a lot, it starts with understanding your numbers and getting creative with your support.  

Before making any changes, work out what salary increases would mean for your profit margins. Then weigh that against what it could cost to replace a valued team member. Small price increases, flexible working, or financial wellbeing support can help you hold onto your team without hurting your bottom line.

Consider offering non-financial incentives like interest-free loans or Employee Assistance Programmes to ease employees’ financial pressures and show you care. These can boost loyalty without large upfront costs.

Discover practical, cost-effective ways to support and retain your staff.

If you're an UMi Sat Nav subscriber, watch our webinar with Blu Sky on tax-efficient staff benefits you could offer.