What happens when your cost of goods quadruples overnight?
That’s not a hypothetical. It’s the reality many small for-profit businesses and nonprofits have faced in the wake of ongoing supply chain instability and tariff volatility. And according to Kenna Valentine, e2E’s Finance Practice Leader and Chief Client Success Officer, these external pressures are creating ripple effects that reach far beyond the warehouse floor.
“We had a prospective client whose product costs quadrupled due to tariffs and overseas sourcing challenges,” she shared. “That kind of disruption puts real strain on cash flow and forces tough decisions fast.”
In today’s economic landscape, cash flow isn’t just a financial metric—it’s a survival strategy. Here’s how for-profit businesses and nonprofits can prepare for—and thrive through—the unexpected.
The Hidden Costs of Supply Chain Disruptions
When tariffs hit or materials are delayed, the impact doesn’t stop with higher prices. Delays mean holding more inventory, paying more for rush shipping, or pausing production altogether. Each of these scenarios tightens the cash flow funnel, making even routine operations unpredictable.
Worse, many small organizations don’t have robust systems to detect early warning signs.
“They may be profitable on paper,” says Valentine, “but still struggling to meet payroll or pay vendors on time. That’s a visibility problem—one that can be solved.”
Strategic Solutions That Strengthen Cash Flow
At e2E, we believe resilience starts with readiness. Here are three key areas where small for-profit businesses and nonprofits can shift from reactive to proactive:
1. Cash Flow Forecasting – Real-time forecasting isn’t just for enterprise CFOs. e2E helps clients run simple, consistent forecasts that map upcoming cash inflows and outflows. Whether you forecast weekly or monthly, the goal is the same: stay ahead of surprises.
2. Lines of Credit – A board-approved or pre-negotiated line of credit is a vital tool, not because you expect to use it, but because you’ll be glad it’s there if you need it. When costs rise or payments are delayed, that line provides a cushion to keep operations steady.
3. Vendor & Contract Management – Rethink your vendor relationships. Can you renegotiate terms? Source materials domestically to avoid tariffs? Join group purchasing organizations? e2E encourages clients to revisit contracts regularly and ask smart questions, not just when a crisis hits.
How Automation Helps You Stay Ready
Automation isn’t just about efficiency—it’s about insight. With the right tools, cash positions can be managed in real time and make data-driven decisions when it matters most.
“We’ve implemented systems like Ramp and Gusto to help clients scan bills, schedule payments, and track cash in ways that reduce human error and increase speed,” says Valentine. “They’re not just working faster—they’re working smarter.”
Here’s what automation makes easier:
- Vendor invoice scanning that reduces manual entry and flags issues instantly
- Real-time dashboards that show available cash, upcoming obligations, and burn rates
- Integrated reporting across payroll, accounting, and AP/AR systems
- Forecasting tools that plug into your actuals, not estimates
And automation isn’t one-size-fits-all. e2E works with each client to build a system that fits their scale, mission, and budget. Read more about how Automation can help with cash flow.
Nonprofits Face Unique Cash Flow Pressures
For nonprofits, the impact of supply chain or tariff disruptions may not be direct, but the instability they create can still strain operations. Federal grants may be delayed, donor behavior may shift, and seasonal fundraising patterns leave gaps.
That’s why e2E recommends nonprofits follow the same cash flow principles as for-profit businesses:
- Maintain a 3–6 month reserve for fixed expenses
- Use forecasting to bridge periods between grant disbursements
- Leverage automation (e.g., Aplos) for clearer, faster reporting
“Nonprofits need just as much visibility as for-profits—maybe more,” says Valentine. “When every dollar is tied to a mission, being in control of your cash means being in control of your impact.”
Building Systems for an Unpredictable Economy
The economy is volatile. Supply chains remain uncertain. And yet, your payroll, rent, and programming costs aren’t going anywhere.
The solution isn’t to panic—it’s to plan. With the right mix of forecasting, funding, vendor strategy, and automation, for-profit businesses and nonprofits can build a system that supports growth, even in choppy waters.
At e2E, we specialize in designing those systems. Our team of CFOs, controllers, and advisors helps clients gain financial clarity and protect what matters most: their people, their mission, and their future.
Let’s build your cash flow safety net. Contact us to get started.