Effective Cash Flow Management
A. Cash Flow Management means a process of Effective Management of Business Cash Flow generated through different sources mainly from;
-Business Operations.
-Investments and
-Financing Activity.
The process involves monitoring, analyzing, and optimizing the inflow and outflow of cash within a business so that Founders/Business Owners get maximum benefits within timelines.
B. The Cash Flow Management process ensure that a Company/Organization has sufficient available funds including anticipate slow periods and work out solutions in advance, etc. to meet its financial obligations on timely such as paying vendor bills, salaries, loan interest & principal repayments etc.
C. Cash Flow Management is a complex process & it cannot compromise and same is required at all stages of business. Effective Cash Flow Management will always help to know in advance about the excess/gap in the cash flow & based on that Founders/Business Owners can take their decision in advance for better utilization of excess available funds or for arranging the funds from external sources to fill the gap in cash flow. Effective Cash Flow Management also gives good market creditability & help to build good brand valuation in the Market.
Our Scope of Services:
- Analysis of Cash Flow from Business Operation including Credit Periods for Debtors/Receivable and Creditors/Payable including Inventories Period & applicable early payment discount options.
- Analysis of Cash Flow generating from Investments Activity like purchase and sale of long-term investments such as property, buildings and equipment.
- Analysis of Cash Flow generating from Financing Activity like inflows related to raising capital as well as paying back debts to investors or lenders.
- Analysis of Amortization Period of all the Secured and Unsecured Loans.
- Analysis & list out all the non-cash items like Depreciation, Amortization etc.
- Analysis of Quick/Acid or Cash Ratio and Current Ratio for effective Cash Flow Management.
- Analysis of long term and short term cash flow requirements of Founders/ Business Owners towards growth/expansion of current business.
- Analysis of all types of Credit Period as applicable to current Business & identify the gap.
- Framing of Effective Cash Flow Management Tools and also the Implementation in a phased manner in all the relevant areas.
- Timely review of all the implemented tools and if required further support is being provided to ensure the required effectiveness.