Profit and cash are not the same thing. A business can show a healthy profit on paper and still struggle to pay salaries at month-end. The businesses that stay steady tend to share a few simple habits.
1. They know their cash position every week
Not at year-end, and not when the bank calls. With up-to-date books and bank feeds, checking cash takes minutes. Make it a weekly routine.
2. They forecast at least 13 weeks ahead
A simple rolling forecast of money in and money out shows a shortfall weeks before it happens, while there is still time to act.
3. They invoice immediately and follow up firmly
Invoice as soon as work is delivered, state clear payment terms, and follow up on the first day an invoice is overdue. Debtors who are allowed to pay late usually do.
4. They set tax money aside
VAT, PAYE and provisional tax are not your money. Moving these amounts into a separate account when you are paid avoids painful surprises on submission dates.
5. They keep a buffer
Aim for at least one to three months of fixed costs in reserve. It turns a slow month into an inconvenience rather than a crisis.
This article is general information based on the law and SARS guidance as at 15 September 2026. It is not tax or legal advice for your specific situation. Please contact us before acting on it.
