(StatePoint) If you’re an entrepreneur, you may be feeling the pinch. New data from Xero suggests increased cash flow pressure for small businesses in 2026.
The latest Xero Small Business Insights (XSBI) data shows while sales grew in the early months of the year, the rise was much smaller than the historical average, amounting to gains that could potentially be swallowed up by inflation and rising gas prices.
So how can your small business overcome cash flow challenges in today’s economy? Here are three practical steps you can take:
1. Getting a clearer view of your numbers: Cash flow challenges are harder to solve when financial information lives in too many places. The best accounting tools today can transform the way you work and give you total cash flow clarity so you don’t just survive, but thrive with the ability to set future goals. Tools like Xero go beyond traditional accounting to serve as a one-stop shop where you can automate everyday tasks, pay your vendors and employees, send invoices to get paid faster, and unlock real-time cash flow insights. Syncing these functions on one platform can help you take control of your business finances and create time for work that’s professionally and financially rewarding.
2. Making the most of your financial tools: At a time when small businesses are feeling mounting pressure, it’s especially important that the software you use to stay financially organized is approachable. That’s why Xero now offers Xero Coaches, onboarding specialists who work one-on-one with small businesses during their first 90 days on Xero to help them get set up and use the platform more effectively. Through scheduled sessions, you can get support with setting up your account and save time from the start. “Taking advantage of this training can help you complete everyday tasks with ease, and sets the stage for strong ongoing relationships with accountants and bookkeepers by enabling you to show up with cleaner data and clearer questions,” says Matan Bar, U.S. CEO, Xero.
3. Working with financial professionals: You may think that a DIY approach to money management is a good way to tighten expenditures. But think of the invaluable hours of labor you can redirect toward the revenue-generating aspects of running your business by seeking professional help. It is as critical to work with accountants as a financial advisor. They can help you not only with cash flow management to ensure you continue to grow, but also with other important tasks like tax planning, developing subscription models and setting up invoicing reminder schedules.
With smart strategies and a good handle on the best technological tools, your small business will be better prepared to overcome cash flow challenges, even in today’s economy.
Photo Credit: (c) Miljan Živković / iStock via Getty Images Plus
