By Ian Dixon, Head of Access to Finance Estimated Reading Time: 3-5 mins Date: 3rd November 2026
Good financial management helps businesses stay on top of costs, prepare for unexpected challenges and plan for growth. Understanding your cash flow and knowing where your money is going can make it easier to spot problems early and make informed decisions. Whether you're starting a business or managing an established one, there are practical steps you can take to strengthen your financial position.
For Talk Money Week (2–6 November), we're embracing this year's theme, It All Counts, which highlights how small, manageable actions can make a meaningful difference to our finances. To mark the occasion, Ian Dixon, Head of Access to Finance at GM Business Growth Hub, shares six practical actions UK businesses can take to manage their finances more confidently.
1. Maintain a rolling cash flow forecast
A positive cash flow is essential to keep a business running. Even a profitable business can struggle to pay its bills if customers pay late or costs appear before money comes in.
A rolling cash flow forecast helps you see what's coming in, what's going out and whether you might face a shortfall. Aim to forecast at least six months ahead and update your figures monthly.
To strengthen your rolling cash flow forecast, you can:
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Forecast your income and costs: Include customer payments, wages, rent, supplier invoices, tax bills and loan repayments.
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Plan for changes: Account for seasonal fluctuations, rising costs and potential delays in customer payments.
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Act early: If your forecast highlights a shortfall, review your spending, chase overdue invoices or explore suitable funding options before the situation becomes urgent.
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Build an emergency fund: Build a cash reserve to cope with unexpected disruptions, aim for three months of operating costs in reserve.
2. Automate financial processes
Managing business finances can involve a lot of admin. Using the right software can help you automate routine tasks, keep your records organised and save you time.
When managing your financial processes, make sure you:
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Automate routine tasks: Use software to manage invoicing, expenses, payroll, reporting, accounts payable and receivable.
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Choose the right tools: Look for affordable software that suits your business needs. Many cloud-based accounting systems provide real-time financial insights while reducing the administrative workload.
The key is to choose a tool that works for your business and is easy to understand. Avoid overly complex systems and look for software that makes managing your finances simpler as your business grows.
3. Monitor key financial performance indicators
Regularly reviewing your financial performance can help you spot problems, understand what's working and identify opportunities to improve profitability.
Turnover alone doesn't tell the whole story. It's also important to understand your costs, profit margins and how efficiently your business is operating.
What you can do:
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Review your finances monthly: Check your profit and loss statement, cash flow and spending against your budget.
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Track key figures: Monitor sales, gross profit margins, operating costs, customer acquisition cost and churn rate.
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Look for trends: Compare results over time to spot changes and decide whether you need to take action.
The figures you track will depend on your business. The important thing is to use your financial information to guide decisions about spending, pricing and growth.
4. Separate business and personal finances
It's easy for personal and business spending to become mixed, particularly when you're starting out. Keeping them separate makes it easier to track business performance, manage cash flow and maintain accurate records for tax purposes.
Some steps you can take include:
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Open a dedicated business bank account: Use it for business income and expenses rather than running them through your personal account.
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Use separate credit cards: Keep business purchases separate from personal spending to make expenses easier to track.
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Pay yourself in a structured way: Use an appropriate salary or owner's draw, depending on your business structure.
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Keep detailed records: Record income and expenditure accurately to support tax and compliance obligations.
5. Prioritise tax planning throughout the year
Tax planning shouldn't just happen at the end of the financial year. It's important to plan ahead rather than leave things until the last minute. Reviewing your tax position throughout the year can help you prepare for upcoming payments, manage cash flow and avoid unexpected bills.
This can include:
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Understanding allowable expenses: Make sure you're recording business expenses and understand which costs can be claimed against your taxable profits.
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Reviewing your tax obligations quarterly: Check what taxes your business needs to pay and when payments are due.
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Planning capital expenditure: Consider the timing of significant business purchases and how they may affect your tax position.
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Keeping up to date with tax changes: Stay informed about changes to tax rules and regulations that could affect your business.
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Seeking professional advice: Work with a qualified accountant or tax adviser to understand your obligations and make use of legitimate tax reliefs.
For further guidance on business taxes and allowable expenses, visit the HMRC website.
6. Work with financial advisers and experts
You don't have to manage your business finances alone. Getting advice from the right experts can help you understand your financial position, manage risks and make informed decisions about your business's future.
Depending on your needs, you could seek support from:
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Business support organisations: To access specialist guidance on cash flow, funding options and growing your business, find your local Business Growth Hub to explore the support available. If you're based in Greater Manchester, GM Business Growth Hub can provide tailored advice and support to help your business grow.
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Accountants: To help you maintain accurate financial records, monitor performance and manage your accounts.
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Tax advisors: To understand your tax obligations and plan for upcoming payments.
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Financial planners: To help you plan ahead, manage your finances and prepare for future growth.
Ian Dixon, Head of Access to Finance at
GM Business Growth Hub, comments:
“Successful business owners in 2027 will focus on cash flow visibility, automation, strategic planning, risk management, and data-driven decision-making. Those who consistently monitor their finances, leverage technology, and plan proactively will be better positioned to grow sustainably and navigate economic uncertainty with confidence.”
Need support managing your business finances?
If you're a Greater Manchester business looking for support with your finances, our Access to Finance team at GM Business Growth Hub can provide tailored advice to help you understand your financial position, explore suitable funding options and plan for growth.
Whether you're starting up, looking to improve cash flow or planning your next stage of growth, our team can help you make informed decisions about your business finances.
Find out more about our Access to Finance support and get in touch with our advisers.
About the Author:
Ian Dixon, Head of Access to Finance
Chartered accountant and corporate finance specialist, Ian has extensive commercial experience and an in-depth knowledge of all forms of SME finance. Ian joined GM Business Growth Hub in 2008, since then he has helped countless SMEs to access diverse sources of finance and investment, across a wide portfolio of financial projects at all levels of complexity.
Currently, Ian leads the BGH Access To Finance service and specialises in supporting the team and businesses engaged in equity fundraising, providing guidance on the understanding of assessment criteria, eligibility and the processes involved in raising funds.
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