The key to warding off cash flow problems is to project your cash flow needs. Study your customers’ paying habits — especially for major accounts — so you can roughly predict when and how much they’ll pay. The amount you forecast should be within 5 percent of your receivables each month.
If your predictions are way off the mark, a cash flow problem could be looming. Each month, compare your projected expenses to your actual expenses. This will help you anticipate the need for more cash and react immediately.