Cash Flow Management Program
How do we enhance your Cash Flow Management with 'Free Cash Flow"
If you own or run a business, you know what cash flow is, and why it’s important.
Wages, super, bills and tax obligations – none of these can be paid without cash flow.
It also allows the business to grow! Hiring more staff or increasing inventory requires capital expenditure – so having money on hand makes this much easier.
But, are you across the best practices for managing cash flow?
How do we create Free Cash Flow?
The process involves a number of steps.
We analyze your financial information, comparing it to your industry’s benchmarks and highlight areas for improvement.
This includes a review of:
- Debtor Management including improving credit and collection procedures
- Inventory (Stock) Management, including review of stock levels and turnover
- Creditor Management
- Debt Management including review of Loan and Finance contracts in relation to interest rates, terms and conditions
We prepare a Cash Flow Budget based on your current position. Then we will run various scenarios through our forecasting software to develop relevant KPI’s and the right action plan to improve your cashflow.
We then discuss the steps that your business needs to take to implement the improvements.
We don’t stop there – we assist you with the implementation and help you to overcome any roadblocks that may hinder progress.
Once fully implemented, the result that can be expected is – a bank balance that is going UP – and stress levels that are going DOWN.
Results for your business
- has been growing for a number of years, both organically and by acquisition
- has a turnover of around $20M
- arrived at a position where the business could no longer obtain additional financing for growth.
After reviewing the client’s financial position and comparing it to the industry’s benchmarks, we developed a plan. It included:
- improved debtor and creditor management
- improved stock management
- new relevant Key Performance Indicators (KPIs) based on the industry benchmarks
These were used to implement a Cash Flow Budget, which resulted in just under $3M of freed-up cash flow allowing the business owner to continue expanding the business.