Most businesses do not fail because they are unprofitable. They fail because cash runs out. Profit may look good on paper, but cash is what keeps the lights on and salaries paid. Cash flow analysis is where accountants stop doing compliance only and start protecting real businesses. It shows problems before they become crises and turns guessing into planning. If you are not talking to your clients about cash flow, someone else will, and they will get paid for it. Cash is not just a number. It is the difference between surviving and shutting the doors.

Non-paying debtors are one of the most common reasons small businesses struggle with cash flow, yet they are often ignored until the situation becomes critical. This article shows how a Chartered Business Accountant in Practice can move beyond simply recording overdue balances and instead help clients assess recoverability, apply the correct accounting treatment, manage tax risk, and strengthen credit control processes. When handled properly, bad debts become an opportunity to protect cash flow, improve financial discipline, and support better business decisions before a crisis arises.