It is without a doubt the best well-worn cliché in business that Cash is King. However, many profitable businesses have failed due to not taking into account cash flow considerations. Therefore, ignore this at your peril. Also, many ask, is this not the same as Forecasting and Budgeting? Well, not really. Forecasting and Budgeting do not consider the timing of cash receipts and payments and usually focus on profit and trading performance. Thus, often ignoring the fact that many financing commitments are not contained in the analysis.
Similarly, forecasting does not look at the actual processes that ensure cash requirements are always covered. This involves such issues as the basis for providing credit, the minimisation of reliance on major customers, and the analysis of the business model in terms of supply chain obligations versus customer payment patterns. Also, ensuring the analysis of financing requirements and providing recommendations to the most appropriate product. Essentially, we offer models that enable your ongoing monitoring and a valuable tool to analyse the potential result of any changes in your situation.