Understand your summer cash flow pattern
The first step is simply knowing what to expect. If your business is seasonal — or if your clients tend to slow down in July and August — you should be able to identify the pattern from prior years. Look back at your bank statements and management accounts for August 2024 and 2025. When did income dip? When did it recover? How long did the quiet period last?
If you are using cloud accounting software, this kind of analysis is straightforward. If you are not, it is one of the most compelling reasons to make the switch — having a clear view of your historical cash flow is the foundation of good forward planning.
Build a short-term cash flow forecast
A cash flow forecast does not need to be complicated. For most small businesses, a simple week-by-week or month-by-month spreadsheet covering the next three months is enough to flag any potential pinch points before they become problems.
Your forecast should include:
- Expected income — confirmed orders, retainers, and likely sales
- Known outgoings — rent, payroll, supplier payments, HMRC liabilities
- Timing — when does each payment actually hit your account, not just when it is invoiced
The goal is not to be perfectly accurate — it is to give yourself enough warning to act. If your forecast shows a tight week in mid-August, you can chase outstanding invoices now, or arrange a short-term facility with your bank in advance rather than in a panic.
