Factual Friday: 82% of Small Businesses Fail Because of Poor Cash Flow Management
Let’s make sure you’re not one of them.
Here’s a surprising (and sobering) fact:
👉 82% of small businesses that fail do so because of poor cash flow management, according to a U.S. Bank study.
That doesn’t mean they didn’t have customers.
It doesn’t mean their product or service wasn’t great.
It simply means they ran out of money—or didn’t realize they were about to.
Now for a story.
Meet Derek (fictional but based on real-life stories). He ran a mobile auto detailing business in Northwest Arkansas. Business was booming—clients loved his work, and he had bookings for weeks.
But Derek was struggling behind the scenes.
He’d spend money as it came in, assuming more would roll in later. He didn’t track income vs. expenses month to month. He couldn’t see if a slow season was around the corner. He was reacting to the bank balance instead of managing his cash flow.
You know how this ends:
A few unexpected expenses hit, and suddenly Derek couldn’t pay his vendor, had to cancel marketing, and was stuck in survival mode.
Now imagine if Derek had a simple cash flow report that showed him:
Where money was going
What recurring expenses to plan for
When to tighten up spending before it got critical
That’s what good bookkeeping does.
And it’s one of the easiest ways to avoid becoming part of that 82%.
I’m Dr. Bryan Raya, QuickBooks ProAdvisor and founder of DBR Bookkeeping. We help small business owners understand their numbers—so they can grow smart, not stressed.
👉 Ready to take control of your cash flow?
Join the DBR Bookkeeping Online Community:
https://www.skool.com/dbr-bookkeeping-8561/about
📅 Or schedule a free 30-minute consult with me:
https://calendly.com/dbr_bookkeeping/30-minute-zoom-consultation-call
Let’s start doing business right.
💬 FAQ: Small Business Cash Flow & Bookkeeping
What is cash flow in a small business?
Cash flow is the movement of money in and out of your business—tracking both income and expenses.
How does bookkeeping help with cash flow?
Bookkeeping provides accurate records and reports so you can monitor trends, plan for expenses, and avoid cash shortages.
What’s the difference between profit and cash flow?
Profit is what you make on paper; cash flow is what you actually have available to spend.
How often should I review my cash flow?
At least monthly—weekly if you’re managing a tight budget or growing quickly.