Cash Flow Fixes: What’s Draining Your Bank Account (and How to Fix It)

Let’s talk about that gut-punch feeling when you check your business bank account and think, “Where the hell did all the money go?”

You’re booking clients, making sales, growing revenue—but somehow, you’re still riding the edge of “just enough” every month. That’s not a pricing problem. That’s a cash flow problem.

Cash flow issues aren’t always obvious, and they can sneak up on even the most seasoned business owners. Below, we’ll break down what could be draining your account—and how to fix it before it tanks your momentum.

🚩 1. You're Paying Everyone… Except Yourself

You’ve got contractors, vendors, platforms, subscriptions—everyone’s getting paid… but you’re stuck playing financial hopscotch.

The Fix:Implement a Profit First model or pay-yourself-first strategy. Allocate a fixed percentage of income to your owner’s draw and tax savings the moment money hits your account. Automate the transfer so you’re not relying on what’s “left over” (because there never is).

🚩 2. You're Not Collecting on Time

Outstanding invoices = cash you’ve already earned but don’t have. If clients are taking 30, 60, or even 90+ days to pay, your business is fronting the cost—and that’s not sustainable.

The Fix:

• Shorten payment terms (ex: net 15 instead of net 30)

• Use invoice software with auto-reminders and late fees

• Offer small discounts for early payments

• Don’t be afraid to follow up—consistently and firmly

  
  

🚩 3. You're Subscribed to Everything (and Using Nothing)

Those $29, $49, $99 monthly charges add up—especially when half of them are “just in case” tools you never actually use.

The Fix:Audit every recurring expense quarterly. Cancel anything not directly contributing to revenue, time savings, or customer experience.Bonus: set a cap on monthly “tech stack” expenses and stick to it.

🚩 4. Your Pricing Isn’t Covering Your Actual Costs

You might feel like your services are profitable, but after factoring in overhead, labor, tools, and delivery time, you could be operating at razor-thin margins—or worse, a loss.

The Fix:Run a unit economics analysis:

• What does it cost to deliver your service/product—truly?

• What’s your profit per sale after everything (software, labor, payment fees, etc.)?Raise prices or cut unnecessary delivery costs to restore margin.

  
  

🚩 5. You're Treating Cash Like Profit

Just because there's money in the bank doesn’t mean you can spend it. Without structure, it’s easy to overspend and under-allocate.

The Fix:Use a bank account structure (like the Profit First method) to assign purpose to every dollar:

• Revenue

• Profit

• Owner’s Pay

• Taxes

• Operating ExpensesWhen money has a job, it doesn’t disappear.

  
  

🚩 6. No Forecast = Constant Firefighting

If you’re not forecasting your cash flow 30–90 days out, you’re always reacting. Surprise expenses, tax bills, slow months—they all hit harder when you’re flying blind.

The Fix:Set up a simple rolling forecast in a spreadsheet or financial tool. Start with:

• Expected income (based on booked work + realistic pipeline)

• Recurring expenses

• Upcoming one-time costsUpdate it monthly and use it to make spending decisions before things get tight.

⚡️ TL;DR: Cash Flow ≠ Revenue

Cash flow is about timing, habits, and structure—not just how much you’re making. When it’s managed right, it gives you options. When it’s not, it strangles your growth.

Need help spotting your leaks?

👉 Book a Cash Flow Audit with Western Reserve ConsultingWe’ll comb through your numbers, identify your top leaks, and help you build a cash strategy that supports you—not just your business bills.

Your bank account deserves better. So do you.