6 Cash Flow Tactics Every SMB Should Know

For startups and SMBs, staying efficient and keeping cash flow healthy is everything.

Let’s face it: cash flow problems don’t just slow you down—they can sink your business if you're not careful. It’s not just about keeping the lights on; it’s about having the funds to grow, take on new opportunities and build stronger vendor relationships.

In fact, 82% of businesses fail due to cash flow problems. So, how do you avoid becoming a part of that statistic?

TL;DR: Discover 6 strategies to boost cash flow and efficiency because for SMBs managing admin better isn’t just smart—it’s essential. From automating tasks to cutting admin costs, this article breaks down how to improve financial operations and deliver outcomes without the expense.

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The Risks of Poor Management

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On average, SMBs lose about 120 days each year to admin work alone. We believe that’s time spent better elsewhere.

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• Cash shortages: Delayed payments can leave you scrambling to cover critical expenses like payroll and inventory. 60% of small business owners report dealing with cash flow issues, and 32% say they've been unable to pay vendors or employees on time because of it.
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• Reduced profitability: Wasting time and resources on inefficient processes eats into your profits. Every dollar wasted here is a dollar you could be investing back into your business.
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• Stunted growth: You can’t expand if you’re constantly worried about cash flow. A lack of available cash puts your marketing, product development, and hiring plans on hold—right when you need them most.
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• Supply chain issues: Late payments to vendors can hurt your relationships, leading to bad terms, supply disruptions, and more headaches down the road.
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• Decreased productivity: If your team is spending too much time on invoicing or chasing payments, they aren’t focusing on what truly drives growth.
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• Growth constraints: Manual processes create bottlenecks that slow you down as you try to grow and scale—not what you want, right?
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6 Ways to Boost Efficiency and Cash Flow

Unlike traditional software that boosts productivity, AI services focus on delivering complete outcomes in a cost-effective and time-saving way.
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1) Automate Invoicing
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• Why it matters: Late payments and manual invoicing can drain your cash flow. Automating this process ensures you get paid on time, without the hassle.
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• Solution: Use tools like Vera's Invoice Manager to track, send and follow up on payments automatically. Businesses that automate invoicing can cut time spent on payment processing by 80%, boosting cash flow.

Improving cash flow is simple—and can be automated.Late payment reminders can slash overdue invoices by 30%.

2) Optimize Payment Terms
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• Why it matters: When you negotiate better terms with vendors, you create more breathing room for your cash flow.
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• Solution: Extend payment terms with vendors (60 or 90 days) while offering early payment discounts to customers. This ensures smoother operations during low-cash periods. In fact, 51% of businesses offer early payment discounts to improve liquidity.
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3) Implement Payment Reminders
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• Why it matters: Missing payment deadlines can mess with your cash flow in a big way. Reminders help keep everyone on track.
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• Solution: Automate reminders leading up to due dates with tools like Vera, so you never miss an invoice because the data shows, late payment reminders really work - in fact, they reduce overdue invoices by 30%.
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4) Monitor Expenses Closely
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• Why it matters: Even small expenses add up, straining your cash flow if they aren’t monitored closely.
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• Solution: Use expense tracking tools like QuickBooks for business. Tracking your spending carefully helps you find areas to cut unnecessary costs, freeing up more cash for critical investments.
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5) Delegate Admin
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• ‍Why it matters: Data entry, compliance tracking and invoicing take up valuable time and can often lead to errors.
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• Solution: Automate these repetitive tasks with AI-powered tools like Vera. Automating admin can cut costs by up to 50% and free your team to focus on revenue-generating work.

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6) Focus on High-Value Clients
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• ‍Why it matters: Not all clients are created equal. Focus on those who pay on time and deliver the most ROI.
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• ‍Solution: Use a CRM tool like Attio or HubSpot to segment clients by payment habits and ROI. By focusing on high-value clients, businesses can see 15-25% more revenue growth.

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The Long-Term Benefits of AI-Powered Admin

Automating your back-office with AI services like Vera isn’t just a short-term fix—it’s a long-term strategy for making your business more resilient and scalable.

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Here’s why:
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• Scalability: As your business grows, your workload will too. Vera scales with you, automating tasks without the need for additional staff.
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• Compliance confidence: Vera’s Government Obligations Manager tracks deadlines and ensures you never miss a regulatory filing, keeping you out of hot water.
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• Improved cash flow: Automating invoicing and payment reminders reduces late payments, giving your cash flow a big boost and reducing financial stress
  

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Invest in Better Outcomes, Not Expensive Overhead.

For small businesses, every dollar—and every minute—counts.

By leveraging AI-powered services like Vera, you can free up resources to invest in what matters: growing your business.

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