Cash Flow Management

Importance of Cash Flow Management

One of the principle areas where companies can get into trouble is not having the ability to track and predict their cash flow needs.  It is one of the key factors in determining your Sellability Score.  This factor focuses on whether or not the cost of new customers and new customer orders increases or decreased short term cash flow.

Business Planning Model

For many companies, the creation of a financial business plan for their business will enable them to forecast their cash flow needs.

Cash Flow Management

Even though companies may have financial reporting which focus on profitability, the failure to add in the impact of Accounts Receivable, Accounts Payable and other balance sheet items to generate cash flow reports can mask issues that can put businesses at risk.

Most companies need to have a Cash Flow Report which looks backwards and a Cash Flow Projection Report which is generated as part of their Business Planning Model which gives them visibility into future cash flow needs.

Picus Enterprises works with businesses of all sizes to help them improve their cash flow management.

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