How to Choose the Best Accountant for Your Business and Manage Cash Flow
Running your own business is rewarding, but let’s be honest – it’s also relentless. From juggling client deadlines to managing your marketing, it’s easy for the numbers to slip to the bottom of your to-do list. But if there’s one area you can’t afford to ignore, it’s your cash flow. Whether you’re just starting out or scaling up, knowing how to manage cash flow in a small business can be the difference between surviving and thriving.
In this guide, we’ll walk through the essentials – from choosing the right accountant to maintaining the cash book and keeping your books tidy. We’ll also share real-life tips and insights that’ll help you take control of your finances without needing to become a spreadsheet wizard.
Why Cash Flow Is the Lifeblood of Your Business
Let’s get one thing clear: profit does not equal cash flow. You could have a profitable business on paper and still struggle to pay your bills if the money coming in doesn’t line up with the money going out.
Cash flow is about timing – when you get paid versus when you need to pay. That’s why it’s vital to stay on top of it, especially if you’re self-employed and wearing all the hats.
💬 “I learnt the hard way,” said Tasha, a freelance graphic designer from Leeds. “I was so busy landing new clients, I didn’t notice invoices weren’t being paid on time. Suddenly I couldn’t cover my tax bill. Now, I review my cash book weekly and use an accountant who checks in with me monthly. It’s made a huge difference.”
Step One: Choose the Right Accountant for You
Finding the right accountant is like finding the right business partner – it’s about more than numbers. You need someone who understands your industry, supports your goals, and communicates clearly.
What to Look For
- Experience with small businesses or self-employed clients
Accountants who understand the ups and downs of self-employment will be better equipped to give you relevant advice. - Proactive, not reactive
Look for someone who doesn’t just crunch the numbers at year-end, but helps you forecast, plan, and optimise throughout the year. - Transparent pricing
A flat monthly fee with defined services is often easier to budget for than hourly rates that can quickly escalate. - Tech-savvy
If they use cloud-based software like Xero or QuickBooks, that’s a bonus – it’ll save you time and make collaboration easier.
“My accountant sends me monthly reports and flags any irregularities,” says James, a videographer in Manchester. “They even spotted a client overpayment once that I completely missed.”
Step Two: Manage Your Cash Flow Like a Pro
Here’s where we get practical. Learning how to manage cash flow in a small business isn’t about being perfect with numbers – it’s about building habits that give you visibility and control.
Managing your cash flow doesn’t need to be overwhelming – it’s about putting simple habits in place. When you understand how to manage cash flow in a small business, you’ll feel more confident making decisions, planning for the future, and dealing with surprises when they arise.
Step Three: Keep Your Books Tidy
Bookkeeping is where the wheels often fall off, especially for creative or service-based business owners who just want to focus on their work.
But staying on top of your cash book (your running record of incoming and outgoing funds) is one of the easiest ways to keep control.
What Is a Cash Book?
A cash book is a physical or digital ledger that records all cash transactions – think of it as a diary for your business money. It helps with:
- Tracking spending patterns
- Preparing for tax season
- Understanding your financial health
Tips for Maintaining the Cash Book
- Record everything – even small expenses like train tickets or client coffees
- Update regularly (weekly is ideal)
- Reconcile with your bank statements
- Use software that automatically syncs with your bank account, or try simple tools like Google Sheets if you’re starting out
“I used to dread bookkeeping until I broke it down,” says Anna, a self-employed virtual assistant. “Now I spend 20 minutes every Friday updating my cash book, and it’s become a non-negotiable part of my routine.”
Bonus: Red Flags to Watch For
If you notice any of the following, take action quickly:
- You’re constantly using personal funds to cover business expenses
- You don’t know how much you owe in tax
- Your invoices are overdue and you haven’t chased them
- You feel nervous or unsure about your business bank balance
These are signs your cash flow needs attention – and fast.
In Summary: Make Your Money Work for You
If you take just one thing from this blog, let it be this: your business will only grow if you treat your cash flow with respect.
Choosing the right accountant, keeping a tidy cash book, and managing your finances proactively can transform your peace of mind and profitability.
So whether you’re just starting out or finally ready to get your books in order, now’s the time to act. Your future self will thank you.
Ready to Get a Grip on Your Cash Flow?
Start by reviewing your current setup. Do you have an accountant you trust? Is your cash book up to date? Do you know your upcoming expenses?
If not, take a small step today. Find an accountant who gets you. Book that bookkeeping catch-up session. Block out time this Friday to start.
Small changes. Big results.