Turning Sales into Cash: How We Cut Payment Delays in Half
A fast-growing retailer was generating impressive sales—but cash flow told a different story. Despite strong revenue, the business struggled to pay expenses on time. Cash was always lagging behind sales, putting the business at risk of a shortfall it couldn’t afford.
A deeper review of their processes revealed three persistent issues:
Invoices were sent with extended terms, encouraging delayed payments.
There was no consistent system to follow up on overdue invoices.
Incoming cash didn’t align with outgoing expenses, creating frequent gaps.
These issues are common among growing businesses, and the solution often lies in restructuring how cash enters the business—not just how it’s recorded.
Here’s the approach we apply in these situations:
Get Paid First
We restructured the retailer’s invoicing terms to require upfront deposits, milestone payments, or retainers. In Xero/QuickBooks, invoices were marked as “Due immediately,” or split with deposit features—ensuring money came in before work began.Shorten Collection Cycles
Using the Aged Receivables Report and Automated Invoice Reminders, the business stopped waiting passively for payments. This reduced the average collection time and brought overdue invoices under control.Match Income with Expenses
We implemented a regular review of the Cash Flow Statement and Short-Term Cash Flow tools to forecast upcoming obligations and ensure funds would be available. This created a clear alignment between what was coming in and what needed to go out.
The Outcome:
Within just a few months, cash flow stabilized. The retailer no longer needed to dip into reserves to cover shortfalls, and they could confidently invest in new stock, systems, and marketing—knowing they’d get paid on time. What started as a revenue-rich but cash-poor situation became a sustainable advantage that fueled further growth.
