Cash Flow & Payroll: 3 Tips to Help You Cover Payroll Without Panic
Cash flow is the lifeline of any small business—but when payroll is due and the money’s not there, stress levels skyrocket.
Whether you run a seasonal business, lost a major client, or simply had a slow month, falling short on payroll is one of the hardest challenges an entrepreneur can face.
So what can you do when payroll is due, and your bank account isn’t ready?
Here are 3 cash flow tips to help you improve short-term liquidity and reduce payroll stress:
1. Invoice Quickly and Follow Up
Send invoices immediately upon completing a job or delivering a product. Use software like QuickBooks Online to automate follow-ups. The faster you invoice, the faster you get paid.
2. Negotiate Vendor Terms
Call your vendors and request extended payment terms or temporary flexibility. A 15-day extension on a $2,000 bill can mean the difference between covering payroll or falling short.
3. Separate Payroll from Operating Funds
Set up a dedicated payroll account and fund it regularly. This creates discipline and visibility—so payroll doesn’t sneak up on you.
But what if I still can’t make payroll?
First—take a breath. You’re not alone. It happens to more businesses than you think.
Next, get strategic:
– Communicate early with your team. Be transparent and respectful.
– Consider short-term funding options like a business line of credit or invoice factoring.
– Prioritize essential personnel and see if you can stagger payments (with employee consent).
– Work with a bookkeeper to create a realistic forecast and recovery plan.
At DBR Bookkeeping, we help business owners get clarity, stop the cash flow chaos, and build smart systems to avoid repeating these stressful moments.
Book a free call with Dr. Bryan Raya, QuickBooks ProAdvisor, to review your payroll and cash flow strategy:
https://calendly.com/dbr_bookkeeping/30-minute-zoom-consultation-call
Let’s start Doing Business Right!
FAQ: Struggling with Payroll Cash Flow
What if I don’t have enough cash for payroll?
Consider invoice financing, vendor deferrals, or short-term credit. Always communicate early with employees.
Can I delay payroll legally?
In some states, delayed payroll can lead to penalties. Always check labor laws and consult a professional.
How do I prevent payroll issues in the future?
Track cash flow weekly, set up a payroll reserve, and review expenses monthly.
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