February–March is for many SMEs the toughest point of the year: invoices are due, taxes and VAT hit at the same time, and sales are not always running at full speed yet. Here are 9 practical ways to manage your cash flow without panic cuts – and at the same time build a solid foundation for Q2.
(This is not individual financial or tax advice. Let’s review your company’s figures together.)
1) Build a 13-week cash flow forecast (and review it weekly)
One Excel view showing:
- Cash in (invoices, contracts, forecasts)
- Cash out (salaries, rent, taxes, purchases)
- Cash week by week
When the forecast is updated weekly, surprises turn into decisions.
2) Invoice “work in progress” as soon as it is billable
In February–March, the key is not letting completed work sit unpaid:
- Break projects into milestones
- Invoice in stages
- Issue invoices immediately after delivery, not “next week”
3) Shorten payment terms in new agreements
One of the most effective Q1 cash flow actions:
- Tighter payment terms for new customers
- Advance or installment payments for larger projects
- Always document terms in contracts and invoices
4) Build a reminder process that doesn’t damage customer relationships
Many companies remind too late or too inconsistently. Make it a routine:
- First reminder shortly after due date
- Second reminder clearly and politely
- If no response: payment plan or structured collection
(If you want this automated and handled professionally, Resonia can manage the process for you.)
5) Clean up receivables: “0–14 / 15–30 / 31+ days”
List all open invoices and divide them into three categories:
- 0–14 days: light reminder
- 15–30 days: call + payment plan
- 31+: decision: payment plan or collection
Cash flow doesn’t improve by hoping – it improves by decisions.
6) Renegotiate 3 costs (without disrupting daily operations)
Choose three major or recurring expenses and make a Q1 adjustment:
- Software licenses (do you need all seats?)
- Supplier payment terms
- Inventory ordering cycle
The goal is not to cut quality, but to move money more intelligently.
7) Ensure VAT and taxes are “set aside” in cash flow
A common cause of Q1 cash stress: tax money has been spent on operations.
Make it a routine:
- Transfer tax portion to a separate account / tax buffer
- Schedule payments and monitor balance
8) Increase prices or repackage services (even small changes help)
February–March is a good time to:
- Raise prices for new customers
- Create clear basic packages + add-ons
- Add hourly pricing for extra work or change requests
Often, cash flow improves not from “more sales” but from better margins.
9) Hold a “Q1 cash flow call” with your accountant
A 15–30 minute session can prevent weeks of stress:
- What cash is missing and when?
- Which invoices must go out now?
- What can be postponed or negotiated?
- What not to do (wrong savings in wrong places)?
February–March mini checklist
-
13-week cash flow forecast completed
-
All invoices sent out (including milestones)
-
Payment terms tightened for new work
-
Reminder process in place
-
Receivables split into 0–14 / 15–30 / 31+
-
3 expenses renegotiated / optimized
-
Tax buffer separated
-
Pricing / packaging updated
-
20 min sparring session booked
FAQ
Is debt collection too harsh a measure?
No, if it is done correctly. A controlled process and payment plans are part of responsible cash management.
What if customers get upset about reminders?
A clear, consistent, and friendly reminder process usually improves customer experience. Uncertainty causes more frustration.
Is it worth shortening payment terms?
Often yes, especially in new contracts – particularly in Q1. For larger projects, upfront payments or staged invoicing work well.
Haluatko kassavirran kuntoon helmi–maaliskuuksi?
Varaa maksuton 20 min keskustelu NCM:n kirjanpitäjän kanssa. Teemme sinulle yrityskohtaisen 13 viikon kassasuunnitelman ja saatavien toimintamallin.