- Mar 23, 2020
- 1 min
- Sep 19, 2019
- 3 min
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Cash Flow Management
Why is it so important to have effective cash flow management?
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Be confident that wages, tax and suppliers are paid on time
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Reduce stress and improve client relationships
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Increase credibility with creditors to give access to loans for business growth
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Feel in control of your business
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Increased efficiency with your operations
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Increased efficiency with your invoicing processes
WHY IS GOOD CASH FLOW MANAGEMENT SO IMPORTANT TO YOUR BUSINESS?
Good cash flow management is critical to the success and survival of your business. If you don’t take care of your cash flow, you could end up not having sufficient funds to settle your bills. Effective cash flow management and cash flow forecasting will ensure that reoccurring costs in addition to all the regular costs such as creditors, employees and tax can be paid on time.
CFO Evolve can help you to improve your cash flow management by reviewing your business’ operational, invoices processes and creating realistic cash flow forecasts about the money coming in and going out of your business. We can streamline your invoicing practices, help to minimise late payments by adjusting payment terms, and improve credit terms with your suppliers. Where additional funds are deemed necessary, strategic funding can then be identified to ensure your business remains cash flow positive at all times.
By improving cash flow, your business will be on the right path to achieve its goals.
The Problem
If your business has its direct debits returned unpaid, delays paying suppliers, and is late making its BAS return, then the chances are your business is showing signs of cash flow stress.
These are all common problems experienced by both large and small companies and are usually a symptom of ineffective financial processes within the business. More companies fail due to cash flow problems than any other reason, and it is the biggest cause of stress and anxiety for business owners.
How CFO Evolve can help you better manage your cash flow?
Our expertise and experience can help to resolve your cash flow issues or help you manage your cash flow to grow your business. Working with a part-time CFO in the short or long term, can help to transform your business into a cash flow positive company.
To set you up for long term cash flow improvement, we can help change and improve your current cash flow processes to proven practices that will give your business the room it needs to breathe and grow into a successful company.
Our aim is to enable cash to flow in and out of your business without causing you and your team stress. We can do this by addressing some areas such as:
1. Secure terms that are manageable for you with creditors. We can assist with many elements of managing your cash flow such as renegotiating your credit terms, often achieving a substantial extension of time beyond the standard 30 days offered by most suppliers. We can negotiate on your behalf so that stock or service is paid for when it is delivered, rather than when it is ordered, leaving your cash working in your account for longer.
2. We can review your operational efficiencies to ensure that you can invoice sooner and consequently be paid sooner.
3. We will act as a sounding board for your financial dilemmas and are not afraid to tell you when you’re better off without troublesome clients.
4. Work with you identifying and help you secure strategic funders that can help with your specific cash flow requirements whether they are for growth or assets such as new infrastructure or even just an overdraft to help with occasional business challenges.
Why is it so important to have effective cash flow management?
-
Be confident that wages, tax and suppliers are paid on time
-
Reduce stress and improve client relationships
-
Increase credibility with creditors to give access to loans for business growth
-
Feel in control of your business
-
Increased efficiency with your operations
-
Increased efficiency with your invoicing processes
If you believe that you require cash flow management services or advice please use the quick contact button below.
Case Studies & Opinion Pieces
need a cash flow advice
urgently?
Have you noticed that it has become increasingly difficult to pay suppliers and staff on time?
Managing cash has become more time consuming lately?
Cash flow is imperative to your business and its survival. Don't wait until it is too late to seek advice.
Contact CFO Evolve today for cash flow management advice.
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Our highly strategic part-time and virtual CFOs have experience across a broad range of C-suite services. We are highly capable part-time and virtual CFOs that can guide your business through cash flow management and forecasting through to developing a strategic plan or an acquisition strategy.
Below details some of our core services, but for a more in depth conversation about how we can help you, please contact us for a confidential conversation.
If you are looking for business growth in your business a dedicated part-time CFO could grow your business with a combined approach of strategy and financial insights across process improvement, business efficiencies and business growth through inorganic means such as acquisition or partnerships.
If you are looking to maximise business profit, CFO Evolve could grow your business with process improvement, business efficiencies and focus on the areas of your business to maximise profits, turn wasted hours into productive ones, saving time, frustration and money.
If you need to provide robust forecasting for one-off funding purposes or wish to use a forecasting model in an ongoing manner that incorporates your profit and loss, balance sheet and cash flow to have full understanding on where your business is going and its challenges, engaging a part-time CFO may assist evolve your business to the next level.
Having a clear strategy, strategic plan or business plan are fundamental building blocks to achieve growth. Your business plan needs to expressly state where the business is going, the strategies to achieve those outcomes, who is accountable for the strategy and the timeframes and measures to ensure they are on-track.
At CFO Evolve; our part-time CFOs build your company a strategic plan or business plan that works.
There are risks associated with many parts of business. Anticipating a business risk and uncertainties before they occur and ensuring the mitigation strategies are incorporated in the strategic plan goes a long way to taking the fluctuations out of your business and ensuring you are on a steady growth curve.
If your business requires a business risk review, a part-time CFO can begin the process much quicker than if you hire an internal CFO.
Whether through debt or equity, a bank, venture capitalist or private equity, it is important to make your organisation ready as a solid business with a strong profit & loss and balance sheet and as an attractive investment to optimise the result.
Our part-time CFO services prepare your company through 3-way forecasting, business planning and process improvement to enable your business is prepared for funding, investment and capital raising.
CFOs typically enjoy to teach and they love to help build team, skill sets and overall, the business. CFO Evolve offer their highly experienced team of part-time CFOs for CFO coaching and mentoring purposes to financial teams that have incurred rapid growth, undergoing inorganic growth such as via a merger, acquisition or strategic partnership and require extra assistance and guidance from a strategic financial perspective.
As the business grows and becomes more complex, even if you have the capability to effectively monitor your financial controller and accountant in particular, it becomes questionable whether you have the capacity or if this is taking you away from growing the business. A part-time CFO can provide this oversight of your accounting functions, providing guidance and an expert skill set to ensure the delivery of this department.
One of the milestone developments of your business will be the creation of an advisory board. It could be the next step in reporting and governance or a pre-cursor to a board of directors. Whilst it is important to have an industry specialist and someone strong in governance such as a lawyer, having a part-time CFO member to provide strategic financial advice in the team is key to the success of the advisory board.
Different from classic business planning, the strategic variety (incorporating acquisition, exit and other strategic activities) involves a long term horizon and out-of-the-box thinking. A strategic acquisition plan helps to provide direction and focus. It points to specific and rapid growth plans with results that are to be achieved and establishes a course of action for achieving them.
A good business coaching provider will not only review your business for growth areas but review the ability of the senior team and the leadership. Business coaching provides developmental ideas that can increase performance from the top down and can provide a sounding board for the CEO and Managing Director on business pain points to be addressed.
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