Free Up Cash in 30 Days: The Cash Impact Framework

f you’re running a growing Australian business, selling products, and recording revenue but your bank balance isn’t growing, this article is for you.

As a CFO immersed in cash flow management, I work with businesses from startups to mid-sized enterprises to unlock cash without relying on loans or investors. Too often, founders are profitable on paper but starved of liquidity — leaving BAS periods stressful, payroll uncertain, and growth opportunities out of reach.

That’s why cash flow must be managed as capital strategy, not just bookkeeping. At CFOPartners, we use the Cash Impact Framework: a systematic set of levers designed to release working capital, strengthen resilience, and improve valuation readiness.

These strategies are practical, measurable in platforms like Xero, and grounded in CFO principles such as optimising working capital. They’re also transparent and fair — avoiding unverified claims or tactics that mislead customers or suppliers.

If applied with discipline, in the next 30 days you can aim for:

• Increased cash in the bank, beyond just accounting profits.

• Smoother BAS reporting cycles, with funds readily available.

• A more confident team, with suppliers and payroll consistently covered.

Below are the seven levers of the framework, tailored for Australian SMEs. Each connects back to measurable metrics, from debtor days to gross margins, so you can track impact and make cash flow a strategic asset rather than a recurring pain point.

Lever 1. Tighten Payment Terms

Extended payment terms can tie up cash when customers delay payments. For new invoices, set 14-day end-of-month terms and offer a 1.5 percent early payment incentive, clearly disclosed in terms and conditions. Use your accounting software to send automated reminders at days 7 and 14, and follow up with a professional call at day 21. For high-value sales, request 30 to 50 percent deposits upfront, a common practice in industries like wholesale, with terms clearly communicated to customers.

Innovative approach: Integrate your software with tools like Chaser for automated, professional follow-ups that maintain client relationships while saving time.

Target: Aim to reduce debtor days by 10 within 30 days, trackable in aged receivables reports.

Lever 2. Eliminate Low-Performing Inventory

Slow-moving stock occupies cash and storage space. Export 90 days of sales data from your accounting software, sorting by units on hand and gross margin. Consider discontinuing the bottom 10 percent of products or shifting them to a pre-order model, informing customers clearly about changes to avoid confusion.

Innovative approach: Use inventory reports to prioritise high-demand products, optimising stock allocation.

Target: Aim to reduce on-hand inventory by 15 percent, freeing space for faster-moving items, measurable via inventory summaries.

Lever 3. Reduce Payment Processing Costs

High merchant fees can reduce cash flow. Review your payment provider’s fees by exporting last month’s settlements and calculating total fees divided by gross payments processed. If the rate seems high, negotiate with your provider or consider a cost-based surcharge, clearly disclosed to customers before transactions. Encourage repeat customers to use low-cost options like bank transfers, with terms provided upfront.

Innovative approach: Explore payment platforms integrated with your accounting software that offer lower-cost B2B invoicing to bypass card fees.

Target: Aim to lower effective fees by 0.1 to 0.3 percent, verifiable in expense reports.

Lever 4. Refine Pricing to Cover Costs

Costs like freight and returns can erode margins if not factored into pricing. Recalculate landed costs per product in your accounting software, including purchase price, shipping, and average return rates (tracked via sales adjustments). Set minimum pricing thresholds to ensure discounts remain profitable, and communicate pricing clearly to customers.

Innovative approach: Integrate your software with e-commerce platforms to adjust pricing dynamically based on real-time costs, ensuring transparency with customers.
Target: Aim to increase blended gross margin by 2 percentage points, trackable in profit and loss reports.

Lever 5. Accelerate Invoicing Cycles

Frequent invoicing can accelerate cash flow, but the right rhythm depends on your business and clients. For high-volume services like consulting or trades, consider weekly invoicing to bring cash in sooner, using automation to minimise admin. For project-based work, use milestone billing (e.g., 30 per cent upfront, 40 per cent mid-project). For retainers, bill monthly in advance. Ensure tax invoices meet GST requirements for BAS reporting, and communicate terms clearly to clients to align with their payment cycles.

Innovative approach: Use repeating invoice features in your accounting software, paired with progress tracking apps, to automate client updates and reduce disputes.

Target: Aim to accelerate cash inflows by 7 to 10 days, measurable in cash flow reports, depending on your invoicing approach.

Lever 6. Optimise Supplier Payment Terms

Strategically managing payables can extend cash availability. Review supplier terms, prioritising critical vendors. For non-essential suppliers, negotiate 30 to 45-day terms, and for critical ones, seek prompt-payment discounts (e.g., 2 percent for payment within 14 days). Ensure terms are agreed upon clearly to maintain fair dealings. Split large invoices across cycles if terms allow.

Innovative approach: Use bill approval workflows in your software to track discount opportunities systematically.

Target: Aim to extend creditor days by 7, trackable in aged payables reports, while maintaining supplier relationships.

Lever 7. Streamline Subscriptions

Recurring subscriptions for software or services can accumulate unnoticed. Review expense reports to identify all subscriptions, including SaaS and trial accounts. Cancel unnecessary or redundant subscriptions, downgrade plans where possible, and assign one team member to approve new subscriptions. Ensure cancellations align with contract terms to maintain fairness.

Innovative approach: Use add-ons like ApprovalMax to flag underused subscriptions automatically.

Target: Aim to reduce monthly overheads by 10 percent, verifiable in expense tracking, without impacting operations.

Your Weekly Cash Flow Dashboard

Create a dashboard in your accounting software or a spreadsheet to monitor:

• Current bank balance (from bank feeds).

• Debtor days, creditor days, and inventory days (from aged receivables, payables, and inventory reports).

• Effective merchant fee percentage (calculated from settlements).

• Blended gross margin (from profit and loss reports).

Update weekly. Missing metrics highlight areas needing immediate attention.

Addressing Common Concerns

• "Customers expect longer terms." Most accept updated terms for new work if clearly communicated. Preserve existing terms for key accounts and monitor outcomes.

• "Pricing changes may reduce sales." Focus on profitable customers, ensuring pricing is transparent and justified.

• "We lack time for changes." These steps require minimal setup and reduce time spent on cash flow issues later.

Next Steps

For tailored support, request a Cash Impact Review. We analyse your data against these strategies and provide a concise action plan. If it doesn’t deliver value, there’s no cost. Contact us to start improving your cash flow today.