Cash flow management is one of the biggest challenges that companies face today. Liquidity indicates the company's ability to meet short-term obligations. Since the evaluation of financial performance has multiple dimensions and is dynamic in nature, this study models the cash flow management policies of a small company using a system dynamics approach. This model is a modified version of some models presented in the past. In this study, the presented model is used to simulate cash flow management policies in a small dairy company so that its results can be used to provide policy recommendations to the company's senior management. This simulation is carried out using Vensim DSS software for a two-year period. Two policy packages, one conservative (current policy) and the other bold (proposed policy), are formulated and simulated in the model. The results show that a bold policy based on obtaining bank loans to provide working capital, if it can lead to a reduction in the cost of products, can significantly improve sales, profit before tax, free cash flow and cash gap compared to the current situation, and the accumulation of loans and the amount of monthly principal and amortization payments will also decrease after 5 months and find an acceptable trend. Therefore, the proposed policy package has improved key financial performance indicators and is recommended.