Cashflow Management

Cashflow Management

Poor cashflow is the number one reason businesses fail.  

Cashflow planning is best practice in any business and critical to survival and growth.  

Setting targets and monitoring your actual cashflow against your forecast will enable you to predict large cash outflows and respond to changes in your business.

Whether your bank has requested a Cashflow Forecast or not, every business owner needs an understanding of cash and liquidity for better decision making.  All businesses should have a Cashflow Forecast in place at the beginning of the new financial year.  Having said that, we can prepare one at any time.  

Cashflow Management Coaching

Helping our clients look ahead with confidence is core to our purpose as your accountants.  We want to work with you beyond preparing a Cashflow Forecast.  

Our Cashflow Management Coaching service has been designed to treat the underlying causes of poor cashflow – starting with your Cash Conversion Cycle.

Together we’ll conduct a thorough review of the potential causes of your cashflow challenges.  We will set annual goals and devise a 90 day action plan for improvement and hold you accountable to implementing simple strategies to maximise cashflow.  

Inadequate cashflow is a symptom of management problems in a business, NOT the cause.  We must fix the underlying issues.

Benefits of Cashflow Management Coaching:

• Monitor actual cashflow against forecast in your accounting or reporting software 
• Allows you to predict and plan for large cash outflows 
• Understand key cashflow drivers and your business’s Cash Conversion Cycle
• Identify ways to avoid late payment penalties and interest 
• Improve your relationships with financiers and suppliers
• Gain an understanding of cash and liquidity for better decision making
• Peace of mind that your cashflow needs are known and properly funded
• Improve business processes to boost cashflow, profit and business value
• Drive your business to achieving your goals in a managed way

Profitable businesses can experience extreme cashflow problems, just as unprofitable businesses can survive if they’re well-funded.  

Understanding the difference between profit and cash and your business’s Cash Conversion Cycle is essential for your business to be viable in the long-term.