How Cash Flow Management Affects your Payroll

How Cash Flow Management Affects your Payroll

There are many reasons why a small business could miss payroll. However, regardless of the reason, this is not a situation that many employees can handle. Especially during these uncertain times with rising interest rates and load-shedding. Missing Payroll affects the trust and motivation that your team may have in your business. Here is how cash flow management affects your payroll.

How small businesses miss payroll

Cash flow is king for small businesses. Late payments from clients, buying new equipment, spending money to fulfill orders and inventory requirements, and large tax bills are just a few factors that may affect a small business’s cash flow.

However, mistakes during the payroll process can also cause delays. Investing in the right payroll software helps businesses run their payroll efficiently, effectively, and accurately.

Managing your cash flow

To avoid missing payroll, small businesses must issue and collect invoices on time. Accurate cash flow forecasting will allow business leaders to spot potential problems on time. Having a cloud financial management solution that has native cash flow forecasting capabilities is a sure way to avoid cash flow problems, and most importantly, missing payroll.


If you have your cash flow issues under control and still foresee missing payroll, it is vital to communicate with the people who will be affected the most—your staff. Remain open and transparent.

The prospect of missing payroll can be stressful for any business owner. However, following the procedures outlined here may make the process more bearable for you and your employees.

Most importantly, it may make your business and payroll processes more sustainable and resilient in the future.

How Cash Flow Management Affects your Payroll in 2023

Interested in learning more about the best payroll solutions for your business? Drop us a line at 011 792 9521 or contact us via email, and one of our experts would be glad to offer guidance on how cash flow management affects your payroll.