Cash Flow: The Hard Truth About Why Your Business Might Be Struggling and How to Fix It Before It’s Too Late

by | Jan 31, 2025 | Landscaping | 0 comments

Cash flow issues can destroy a business. For some landscaping businesses, it’s a constant juggling act to cover debt payments, pay employees, and seize opportunities for investment or growth. For others, it’s the reason they have to shut their doors for good. We’ve seen it happen first-hand: landscaping businesses who have ignored cash flow problems until it was too late.

But that won’t be you. Not on our watch. 

The Real Picture of Cash Flow Mismanagement

Most business owners overestimate their control over cash flow. According to a report published by Relay earlier this year:

  • 95% of business owners rely on their bank balance for spending decisions 
  • But only 24% organize their income across different accounts, allowing them to accurately see the full picture. 

Nearly all business owners surveyed faced a cash flow crisis in the past 12 months. So if this is you, you’re definitely not alone. Nearly ⅓ of businesses surveyed shared that they had missed or been late to pay major expenses such as their own salary, supplier bills or rent. As you can imagine, these missed payments can negatively impact relationships and jeopardize your business future. 

Alright, you get the picture. So what do we do about cash flow? 

You guessed it – Profit First. 

The Profit First Solution

Profit First flips the script. Instead of relying on one bank account and praying the balance holds, Profit First uses multiple accounts, or “buckets,” each designated for specific purposes like payroll, expenses, taxes, and owner’s pay. 

This system gives business owners a clear view of their financial obligations and helps you from spending funds on the wrong things. 

By designating funds, you’ll see exactly how much you have for each need. For example, if the “operational expenses” account is short, you know instantly that there’s an issue and can run through possibilities: 

  • Are clients paying on time? 
  • Did we overspend on operational costs last month? 
  • Are our prices high enough to sustain the business?

Reality Check: Gaining Control Over Cash Flow

When business owners implement Profit First and begin using designated accounts, the truth of their spending habits becomes visible. Similar to using a physical envelope system, business owners are able to see their balance for that “budget bucket.” So if they are thinking about an equipment upgrade and need to pay themselves, they’re able to see very quickly whether that’s possible. Oftentimes, this approach is a wake-up call—but one that can set them on the right track.

No More Skipping Payments to Yourself

One of the hardest truths about poor cash flow management? The first person to miss out is usually the owner. When all funds are together, you might convince yourself there’s not enough left to pay yourself or that the funds should stay in the business. With Profit First, however, owner’s pay is an essential account, right there with payroll and expenses. This approach ensures you’re building a sustainable business with reserves for expenses, growth and rainy-day needs, while compensating yourself. 

The Cost of Ignoring Cash Flow Problems

When cash flow is mismanaged, it doesn’t just hurt your business—it hurts you. Anxiety, burnout, and sleepless nights are common consequences for owners who constantly juggle financial crises. These issues can ultimately spill over into strained relationships and missed opportunities, both in and out of work.

And at AccountSolve, we want better for you. And better for your business. 

So here’s what we recommend: 

How to Get Started with Profit First

  1. Set Up Multiple Bank Accounts: Start by setting up accounts for Income, Profit, Owner’s Pay, Taxes, and Operating Expenses.
  2. Allocate Income Weekly: Allow customer payments to accumulate in the Income bank account.  Each week, distribute the funds according to your designated percentages for each account.
  3. Stay Disciplined: Only use the funds in each account for their intended purpose. If the Operating Expense account runs low, it’s a sign to reassess spending—not dip into another account.
  4. Make the Change Before It’s Too Late


Profit First is more than a cash management method—it’s a mindset shift. By recognizing the real state of your cash flow, you gain control over your landscaping business’s financial future. Don’t wait until cash flow issues force you into hard decisions. 

Contact us today to get started with your shift to Profit First.

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Lori Peterson

About

Lori Petersen

Lori Petersen has seen the frustration and loss that business owners experience when they don’t have command of their finances. Growing up, she watched her father work incredibly hard as a contractor. He’d come home late, eat the dinner kept warm in the oven, and do it all over again the next day. But it all came crashing down when he had to close the business and Lori’s family applied for food stamps. The business had failed and all of his hard work was for nothing. 

Today, Lori views every one of her clients as an opportunity to make this right. She firmly believes no one should work as hard as her dad did and not have a profitable business. No family should suffer because business finances were poorly managed. 

Lori has helped hundreds of business owners make sense of their finances, implement proven money management systems and create unimagined profitability for their business. She ensures they experience the return they deserve for their hard labor.

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