Independence Day is this Friday – I hope you’re taking time to rest over the long weekend, with some grilled burgers and sparklers involved.
But before you go into holiday mode, I want to tap you on the shoulder for a quick look back.
We just wrapped June. And month-end checkpoints matter more for your business’s growth than you might think.
Because this is your built-in chance to step out of the weeds and look at the whole picture. Without intentional pausing, it’s way too easy to run your Southeastern Wisconsin business off of instinct and urgency. That kind of habit is where clarity and confidence start to compound.
So, if you haven’t scheduled your end-of-month review with me yet, now’s the perfect time. We’ll look at where things stand, spot red flags while they’re still tiny, and map out a plan for the next few weeks: 414-325-2040
Because I get it – you’re busy. Too busy, sometimes, to stop and analyze when you’re stuck reacting to whatever fire’s in front of you.
Which brings me to what we’re diving into today: managing your expenses when cash flow is tight. This is a reality I see a lot of business owners navigating.
So, let’s talk about how to navigate it – and how to strategize for cash flow stability.
Managing Business Expenses Comes Down to This in Your Milwaukee Business
“Change is made of choices, and choices are made of character.” —Amanda Gorman
Expert Recap: Managing Business Expenses When Cash Flow Is Tight
- Prioritize essential expenses that keep your business running — like utilities, software, and key vendor relationships.
- Handle tax obligations early, as penalties stack quickly and create long-term headaches.
- Communicate with vendors and lenders — proactivity often leads to flexibility.
- Audit recurring expenses and eliminate anything that’s not pulling its weight.
There’s nothing quite like opening your bank account on a Monday morning and realizing you’ve got more bills than buffer.
That vendor payment you forgot about? Due tomorrow.
Payroll? Looming.
Rent? Non-negotiable.
And the big question becomes: “What do I pay first?”
That question doesn’t mean you’ve failed. It’s reality. And this year, it’s a reality more business owners are facing — because margins are thinner, customers are paying slower, and the cost of running a business hasn’t exactly taken a breather.
So let’s get real about how to handle it. Because while you might not be able to pay everything right now, you can make decisions that protect the health of your Milwaukee business.
Start with: What matters most?
Not every business needs to “keep the lights on” in the literal sense these days, but every business does rely on certain essentials to function.
For you, that might include:
- Your internet service
- Accounting or payroll platform
- Scheduling or invoicing software
- Key team members (freelancers, contractors, or employees)
- Payment processors or POS systems
Those systems go down? So does your business momentum.
If your business operates in a physical space (an office building or retail space), think utilities, internet service, and rent as well as the things mentioned above.
Make a list of “mission-critical” expenses – anything that directly ties to income generation or service delivery. These should always be the first line items you protect when managing business expenses in a tight month.
Next: Your tax bills
Payroll taxes, sales tax, income tax — these aren’t just bills, they’re liabilities. The penalties rack up fast, and the IRS doesn’t exactly do grace periods.
Bookkeeping tip: Set up a separate account for any taxes you collect. That way you’re not tempted to treat that money like working capital. Because it’s not.
And if you know you can’t pay on time… at least file on time. The penalty for not filing is worse than the one for not paying. Then talk to your tax pro or the IRS about a payment plan – it’s often easier than you think.
Payroll
When revenue shrinks, it’s often the owner who eats the shortfall, skipping a paycheck so the team gets paid. That’s honorable… but not sustainable.
Protecting payroll is protecting your business. Especially now, with high turnover and low hiring pools, replacing great employees is costly, both in dollars and lost momentum.
And if managing business expenses means you absolutely have to make payroll adjustments:
- Be transparent with your team
- Explore temporarily reduced hours before layoffs
- Talk to us about using lines of credit or ERTC refunds (if available) to cover gaps
Mission-critical vendors
Some suppliers are easy to swap. Others? Not so much. You know which vendors keep your operation humming – whether it’s raw materials, equipment maintenance, or a tech contractor you can’t run without. Make sure they’re taken care of.
Bookkeeping tip: Use tags or notes in your accounting software to track which vendors are essential. That makes decision-making faster in a pinch.
And for everyone else? Communication is key. If a bill isn’t at the top of your priority list, don’t ignore it — reach out.
Vendors, landlords, and even lenders are often more willing to negotiate when you’re upfront and communicative.
- Ask for a short extension or modified payment plan.
- Offer a partial payment as a show of good faith.
- Keep the relationship warm — it matters long term.
The biggest mistake you can make here is avoidance. Silence erodes trust. Communication builds it.
Audit recurring costs
Now’s the time to audit every recurring expense:
- Subscriptions
- SaaS tools
- Apps with overlapping functionality
- Services you forgot you signed up for
You might be surprised how much cash is hiding in plain sight.
Set a reminder to review subscriptions quarterly, and cancel or downgrade anything that isn’t directly supporting your business goals.
FAQ
“Should I use a credit card or line of credit to cover essential expenses?”
If used wisely, yes — short-term credit can bridge a gap. But only for mission-critical expenses, and only if you have a plan to repay it soon. Let’s chat about interest rates and terms before you swipe.
“How do I decide who to pay when I can’t pay everyone?”
Prioritize managing business expenses in this order:
- Essential services that keep your business operating
- Payroll
- Tax obligations
- Critical vendors
- Everyone else (with communication)
“How can I avoid this situation in the future?”
Build a 3-month emergency operating fund, improve accounts receivable processes, and monitor cash flow weekly (not monthly). My team and I can help you set up the right tools to make that easier.
“What if I already owe back taxes?”
Get a tax resolution specialist involved ASAP. The IRS offers payment plans, and in some cases, penalty relief. But know: the longer you wait, the fewer options you’ll have.
“Is it okay to delay my own paycheck?”
In a big pinch, yes — but don’t make it a habit. You’re the engine of your business. Long-term sustainability means building your pay into your business model, even during lean seasons.
“How often should I review my recurring expenses?”
Every quarter is a good rhythm. At the very least, do it twice a year — before tax season and at mid-year.
“Should I consider raising my prices if cash flow is always tight?”
Yes – if you haven’t adjusted prices in the last 12–18 months, it’s likely time. Costs have gone up, and your pricing should reflect the value you bring. My team and I can help you evaluate when and how to increase rates without losing clients.
Here’s the thing: none of this works without a clear view of your numbers.
Your books should help you make these decisions quickly. You should be able to: 1) see what’s due in the next 7, 14, and 30 days, 2) forecast cash flow at least four weeks out, and 3) prioritize based on both urgency and impact. If your books can’t do that for you… Let’s talk:
414-325-2040
We’ll get you a clearer path forward — fast.