Managing cash flow isn’t just an accounting exercise—it’s survival.
In Canada, where tax rules, financing options, and market conditions vary widely by province and industry, understanding cash flow is critical if you want your small business to thrive year after year.

Whether you're running a solo practice or scaling a team, here’s how to master your cash flow and stay profitable.

Cash flow is the actual movement of money in and out of your business—not just what’s on paper after expenses.

You can technically be "profitable" according to your income statement but still run into trouble if cash isn’t coming in when you need it.

Positive cash flow = more money coming in than going out.
Negative cash flow = spending more than you’re bringing in.

In Canada, where businesses often deal with delayed invoice payments and quarterly GST/HST obligations, cash flow gaps can sneak up fast.

1. Delayed Payments: Especially when working with government clients or large corporations.

2. Tax Surprises: Owing GST/HST or corporate taxes in lump sums.

3. Seasonality: Many industries experience seasonal highs and lows.

4. High Overhead: Rising costs like insurance and payroll.

1. Forecast Your Cash Flow
Create a 12-month cash flow projection showing expected revenue, expenses, tax remittances, anticipated asset purchases, and loan payments. Update monthly.

2. Tighten Up Accounts Receivable
Offer incentives for early payment, send reminders, and make payments easy with Interac e-Transfer Autodeposit. Switch to pre-authorized payment plans for recurring work.

3. Separate Taxes from Working Cash
Open a separate account for GST/HST collections and CRA remittances so you can transfer your tax obligations there. This will help you save and visualize exactly how much you have to remit.

4. Negotiate Supplier Terms
Ask suppliers for net 45 or 60 terms. Using credit cards responsibly can also help extend cash outflow.

5. Build a Cash Reserve
Keep at least 1-3 months' worth of expenses in a high-interest savings account.

6. Monitor Regularly
Review your cash flow monthly, not just at tax time, to make informed decisions.

At Accounting North, we help small businesses across Canada stay organized, compliant, and cash-flow strong.

Ready to get a handle on your cash flow?

 Schedule a free consultation with Accounting North today.

Need help cleaning up your books? Schedule a free consultation with Accounting North and let’s get your finances in order.