As we progress further into the new year, there’s no better time to reassess your financial practices and set your business on a path to sustained growth and stability. Among the many metrics and KPIs you may track, two critical numbers deserve your consistent attention: your average bank balance and the average number of days to customer payment. These numbers offer an invaluable snapshot of your business’s financial health and cash flow stability—tools every landscaping, tree care, and lawn care business owner needs in their toolbox.
Why Cash Flow Should Be Your Priority in 2025
Cash flow is the lifeblood of any business, but for small service-oriented companies like landscaping, tree care, and lawn care, it can mean the difference between thriving and merely surviving. Too often, businesses operate with insufficient cash reserves, relying heavily on credit to fill the gaps. While credit can be a valuable tool, when overused, it signals deeper problems that must be addressed.
By focusing on the right cash flow metrics, you can identify potential issues before they spiral out of control. Let’s break down these two essential metrics and how to use them effectively.
1. Average Bank Balance Over 30 Days
Your average bank balance for the past month is one of the quickest and simplest ways to gauge your financial position. While daily account balances can vary due to payments and deposits, the 30-day average smooths out fluctuations, giving you a clearer picture of your true financial standing.
Why This Matters:
→ Stability Over Time: Comparing your current 30-day average bank balance to previous periods (e.g., six months ago or a year ago) can reveal trends. Are you consistently improving, or is there an unexplained dip?
→ A Quick Warning System: If your average balance is declining and it doesn’t correlate with revenue or planned investments, this could be an early indicator of trouble.
How to Use It:
→ Compare Periods: Review your average bank balance and look for deviations. Seasonal shifts are natural in the landscaping industry, but unexpected dips should prompt closer examination.
→ Set Goals: Establish a minimum acceptable average bank balance. This can act as a buffer to weather slow periods or unforeseen expenses.
2. Average Number of Days to Customer Payment
The second critical number to monitor is the average time it takes for your customers to pay their invoices. This metric often fluctuates with economic conditions, but an increase—especially in a strong economy—should raise red flags.
Why This Matters:
→ Cash Flow Dependence: Delayed payments from customers can choke your cash flow, leaving you scrambling to cover expenses like payroll, equipment maintenance, or material purchases.
→ Indicator of Billing Health: Lengthening payment times could point to inefficiencies in your invoicing process or issues with customer communication.
How to Use It:
→ Track Trends: Like the average bank balance, compare your current payment timelines to previous years. Is this number consistent, or is it trending upward?
→ Evaluate Policies: Consider updating your payment terms or incentivizing faster payments. Options include early payment discounts or requiring deposits before beginning work.
How These Numbers Fit Together
When these two metrics are stable or improving, it’s a sign that your business is on solid financial ground. Together, they provide a quick but comprehensive view of your cash flow, helping you to spot and address potential problems early.
→ Cash Stability: A healthy average bank balance ensures you have the liquidity needed to run your business smoothly.
→ Predictable Income: Fast customer payments allow you to forecast cash flow with greater accuracy, reducing reliance on credit or emergency measures.
While these metrics are invaluable for day-to-day monitoring, they’re just the starting point. To truly master your financial performance, deeper analysis and strategic adjustments are necessary.
The Bigger Picture: Making Cash Flow Work for You
Understanding these metrics is the first step; the next is using them to inform broader financial strategies like budgeting and forecasting. By aligning these numbers with your business goals, you can build a financial plan that supports both growth and resilience.
→ Leverage Zero-Based Budgeting: Take the guesswork out of budgeting by starting from scratch and building a financial plan based on current needs and goals.
→ Align Budgets with Growth: Your budget isn’t just a tool for expense control—it’s a roadmap for reaching revenue targets and scaling your operations.
→ Adapt and Monitor: Make your financial plan a living document. Regularly update and adjust it based on real-time cash flow insights and market conditions.
Ready to Take Control of Your Financial Future?
If you’re committed to building a financially strong and profitable business in 2025, now is the time to act. Learning to manage cash flow effectively isn’t just about avoiding financial stress—it’s about positioning your business for long-term success.
Be well, do good work, and keep in touch.
Fred Haskett
TrueWinds Consulting
Join Our Upcoming On-Demand Webinar

Event Title: Budgeting: First You Plan, Then You Forecast, Now You Grow
When: January 28 & 29, 2025, 1:00–2:30 PM EST (each day)
What You’ll Learn:
→ How to build an actionable budget tailored to your business goals.
→ Strategies to align budgets with growth objectives.
→ Techniques for leveraging zero-based budgeting and forecasting.
Don’t let 2025 catch you unprepared. Secure your spot today and take control of your business’s financial future.