3 Cash Flow Traps That Could Hurt Your Business (And How to Avoid Them)

Managing cash flow is not just about knowing how much money is coming in and going out. It's a matter of survival — especially for growing businesses that, at first glance, may seem financially healthy. In 2025, with tax changes, rising operational costs, and a more uncertain economic landscape, many businesses may be caught off guard. The good news? These traps can be avoided.

Let's explore three common mistakes that affect the cash flow of businesses (even the most experienced ones) — and how you can prevent each one.

Payment Delays:

When Money Comes In Too Late Did you know that 83% of Swiss businesses reported payment delays from customers? (Source)

And we're not just talking about small businesses. Even businesses with a solid customer base can find themselves in trouble if payments aren't properly managed.

Practical example: imagine you have CHF 100,000 in sales in a quarter. If 30% of that amount is paid 90 days later than expected, how are you going to pay salaries, suppliers, or taxes on time?

Solution:

• Implement an automated and professional invoicing system (without sounding aggressive).

• Negotiate shorter payment terms with new clients.

• Set credit limits and penalties for late payments.

• And, of course, maintain clear and direct communication with each client — especially in B2B contexts.

  
  

Hidden Expenses:

Costs That Eat Into Profits Without Warning Who hasn't been surprised by an invoice that wasn't in the plans? This happens frequently, often in "silent" areas like technology, accounting, bank fees, or tax obligations.

With recent changes in Swiss tax law, this risk has increased. Starting in January 2024, for example, companies with significant turnover are subject to a minimum tax rate of 15%. (Source)

And don't forget VAT reconciliation — which must be done within 240 days after the end of the fiscal year. Ignoring this can lead to fines, interest, and headaches with authorities.

Solution:

• Keep an updated tax plan, with the support of an external CFO or trusted financial consultant.

• Create a "contingency expenses" category in the monthly budget (minimum 5-10%).

• Review contracts with suppliers and platforms to detect hidden costs.

  
  

Poor Working Capital Management:

The Silent Killer of Growth Working capital is the lifeblood of your business. Without it, the company stops — even if it's profitable on paper.

This mistake is very common in companies that grow too quickly or invest too heavily in stock, human resources, or marketing... without ensuring there is enough liquidity to keep everything running smoothly.

Warning signs:

• You need to take out loans to pay basic bills.

• Supplier payments are always delayed.

• You need to cut back on strategic areas to "balance" the cash flow.

Solution:

• Regularly analyze your receivables and payables cycles.

• Reduce inventory times (produce or order only what's necessary).

• And run scenario simulations (what if?) using digital tools.

  
  

How to Detect These Problems Before It's Too Late? Today, it no longer makes sense to manage a business without real-time visibility into finances. Tools like TRESIO or BEXIO help you see the state of your cash flow, anticipate risk situations, and make more strategic decisions.

But more important than the tool is having a solid financial plan and specialized support — especially if you want to grow with stability and confidence.

A business’s financial success doesn’t only depend on sales or profits. It depends on how money flows within the business.

In 2025, avoid the silent traps that could compromise your stability:

✔️ Ensure payments come in on time.

✔️ Keep control over hidden expenses and tax obligations.

✔️ Manage working capital as a true strategic asset.

If you need help organizing, analyzing, or scaling your business's financial management — We are here to support you. Because clear finances = clear mind = better business decisions.

Contact Us Now!