Cash Management

Whilst profit is what every business strives to increase, cash is the enabler that allows your business to flourish or will bring it to a grinding halt. Debtors, creditors and inventory are direct contributors to the utilisation or generation of working capital. A growing business will typically require more cash as the investment in working capital increases. Managing the cash flow cycle from the first outlay of cash for payment of suppliers through invoicing and final collection of debtors is critical. Structuring and negotiating payment terms with both customers and suppliers will help shorten the cash flow cycle. Calculating optimal inventory levels will minimise cash outflows. Forecasting your cashflow requirements will allow you to anticipate when additional funding is required affording you the time to put the necessary strategies in place to ensure your business has the liquidity it needs to function.

Give consideration to:

  • Cash Forecasts
  • Working Capital Management
  • Financing and loans