Revenue Is Up But Cash Is Tight? 5 Cash Flow Fixes That Actually Work
01/21/2026
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You just had your best quarter ever. Sales are climbing, new customers are rolling in, and your revenue reports look amazing. So why does it feel like you're constantly scrambling to cover payroll, pay vendors, or keep the lights on?
If this sounds familiar, you're not alone. This frustrating disconnect between strong sales and tight cash is one of the most common (and confusing) challenges growing businesses face. The good news? It's totally fixable.
Let's break down why this happens and, more importantly, five cash flow fixes that actually work.
Why Revenue Doesn't Always Mean Cash in the Bank
Here's the thing most business owners don't realize until they're living it: revenue and cash flow are two completely different animals.
Revenue is what you've earned on paper. Cash flow is what's actually sitting in your bank account, available to use right now.
You can have a million dollars in sales and still struggle to make rent if:
Your customers are slow to pay their invoices
You're spending too much to fulfill those sales
Your pricing doesn't account for your true costs
Growth is eating up cash faster than it's coming in
Sound familiar? Let's fix it.
Fix #1: Take a Hard Look at Your Pricing
This one stings a little, but it's worth addressing first. If you're selling like crazy but still strapped for cash, your pricing might be the problem.
Many business owners set their prices based on what competitors charge or what "feels right" without actually running the numbers. But here's the reality: if your prices don't cover your true costs AND leave room for profit, you're just running faster on a hamster wheel.
What to do:
Calculate your break-even point. Know exactly how much you need to sell just to cover your costs.
Analyze profit margins on each product or service. You might be surprised to find your bestseller is actually losing you money.
Don't be afraid to raise prices. If demand is high but profits are low, the market is telling you your value is worth more.
It can feel scary to raise prices, but undercharging is one of the fastest ways to grow yourself right out of business.
Fix #2: Get Serious About Cutting Expenses
When revenue is up, it's tempting to spend more. New software, bigger office, extra hires, growth feels good, and spending feels like investing in that growth.
But here's the catch: every dollar you save on expenses is a dollar that goes straight to your cash reserves. That's way more powerful than chasing another dollar in sales (which comes with its own costs attached).
What to do:
Audit your recurring expenses. Subscriptions, software, memberships, these sneak up on you. Cancel what you're not actively using.
Renegotiate with vendors. Loyalty doesn't pay the bills. Ask for better rates, especially if you've been a consistent customer.
Question every "necessary" expense. Do you really need that premium plan? That extra service? That fancy tool?
You don't have to slash everything to the bone, but a little trimming can free up a surprising amount of cash.
Fix #3: Speed Up Your Collections
This is the big one. You can have $50,000 in outstanding invoices and still not be able to pay a $2,000 bill because that money isn't in your account yet.
Late payments from customers are one of the primary reasons businesses struggle with cash flow, even when sales are strong. The longer your money sits in someone else's pocket, the tighter things get on your end.
What to do:
Set clear payment terms upfront. Net 30? Net 15? Make sure your customers know exactly when payment is due before the work begins.
Require deposits for large projects. Getting 25-50% upfront helps cover your costs while you deliver.
Invoice immediately. Don't wait until the end of the month. Send that invoice the moment the work is done.
Automate follow-ups. Use invoicing software that sends reminders automatically so you're not chasing people down manually.
Track payment patterns. If certain customers are chronically late, it might be time for a conversation, or to reconsider the relationship.
The goal is simple: get the money you've earned into your bank account as fast as possible.
Fix #4: Build a Cash Reserve (Yes, Even Now)
When cash is tight, the idea of "saving" sounds laughable. But here's the counterintuitive truth: building a cash reserve is exactly what protects you from staying in this cycle forever.
Think of it like this: without a buffer, every slow week or unexpected expense becomes a crisis. With a reserve, you have breathing room to make smart decisions instead of desperate ones.
What to do:
Start small. Even setting aside 2-5% of revenue each month adds up over time.
Automate it. Set up a separate savings account and transfer a fixed amount automatically. Out of sight, out of mind.
Protect it. This isn't your "fun money" account. It's your emergency fund for payroll gaps, slow seasons, or surprise expenses.
Building a reserve takes time, but it's one of the most stabilizing things you can do for your business.
Fix #5: Manage Your Growth (Don't Let It Manage You)
Here's the paradox of success: growth costs money. Sometimes a lot of it.
When sales spike, you need more inventory. More staff. More capacity. And all of that requires cash upfront: often before you've collected on those new sales.
This is how businesses "grow themselves broke." They expand too fast, overcommit resources, and suddenly find themselves cash-strapped despite record revenue.
What to do:
Slow down and be strategic. Not every opportunity is worth chasing right now.
Focus on your existing customers. Upselling and cross-selling to people who already trust you generates revenue without the heavy upfront costs of acquiring new customers.
Phase your expansion. Instead of hiring three people at once, hire one and see how it goes. Instead of doubling inventory, increase by 25%.
Run the numbers before committing. Will this growth actually improve cash flow, or just increase revenue while tightening cash even more?
Sustainable growth beats fast growth every single time.
The Bottom Line
Revenue going up while cash stays tight isn't a mystery: it's a math problem. And like any math problem, it has a solution.
By adjusting your pricing, trimming expenses, speeding up collections, building reserves, and managing growth strategically, you can break the cycle and finally feel like your bank account reflects all that hard work you're putting in.
The key is taking action now, before the cash crunch turns into a full-blown crisis.
Ready to Get Your Cash Flow Under Control?
If you're tired of the revenue-cash disconnect and want a clear plan to fix it, we're here to help. At Ledger Leaders Strategy Group, we work with growing businesses every day to untangle cash flow challenges and build financial strategies that actually work.
Book a call with our team today and let's figure out exactly what's going on with your numbers: and how to fix it.