Cash Flow Management
Cash flow is not the same as profitability. A business can be profitable on paper but still run out of cash. Cash flow management is the art of timing ensuring that cash inflows arrive before or at the same time as cash outflows. We help you master this art, giving you the financial flexibility to navigate uncertainty and seize opportunities.
Cash Flow Forecasting
A cash flow forecast is your early warning system. It tells you when cash will be tight and when you will have surplus, enabling proactive management rather than reactive crisis response.
Weekly & Monthly Forecasting: Building short-term cash flow forecasts that project cash position 4-12 weeks out with high accuracy.
Rolling Forecasts: Maintaining a continuous 12-month forecast that is updated regularly as actual results come in.
Scenario Analysis: Modeling best-case, worst-case, and most-likely scenarios to understand your cash flow range and prepare for volatility.
Covenant Tracking: Monitoring compliance with any debt covenants or investor requirements related to cash balances or ratios.
Alert Systems: Establishing triggers that alert you when cash is approaching minimum thresholds, enabling early intervention.
Working Capital Optimization
Working capital the cash tied up in day-to-day operations—is often the largest drain on a growing business. We help you optimize each component.
Accounts Receivable (AR) Management: Strategies to accelerate customer payments invoicing promptly, offering early payment discounts, implementing automated payment reminders, and establishing clear credit terms. For B2B businesses, we help you reduce days sales outstanding (DSO).
Accounts Payable (AP) Management: Strategies to optimize payment timing without damaging supplier relationships negotiating extended terms, taking advantage of early payment discounts when beneficial, and scheduling payments to align with cash inflows.
Inventory Management: For businesses holding physical inventory, we help you optimize stock levels reducing carrying costs without risking stockouts. Just-in-time (JIT) inventory systems, safety stock calculations, and slow-moving inventory reduction strategies.
Cash Conversion Cycle: We calculate and help you reduce your cash conversion cycle the time between spending cash on inputs and receiving cash from customers. A shorter cycle means less capital tied up in operations.
Burn Rate & Runway Analysis
For early-stage and growth-stage businesses, understanding your burn rate and runway is essential to survival.
Gross Burn vs. Net Burn: Distinguishing between total cash spent (gross burn) and cash spent net of revenue (net burn). Both metrics matter, but net burn determines your runway.
Runway Calculation: Calculating exactly how many months of operations your current cash reserves support, based on your net burn rate.
Runway Extension Strategies: If runway is insufficient, we help you identify strategies to extend it reducing discretionary expenses, delaying non-critical hires, accelerating revenue, or pursuing bridge financing.
Milestone-Based Planning: Aligning your cash runway with key milestones product launches, revenue targets, fundraising events ensuring you have enough cash to reach the next value inflection point.
Treasury Management & Cash Reserves
Cash that is sitting idle is a missed opportunity. But cash that is too aggressively invested is a risk. We help you find the right balance.
Cash Reserve Policy: Establishing guidelines for minimum cash reserves based on your operating expenses, revenue volatility, and risk tolerance.
Surplus Cash Management: For businesses with cash reserves, we advise on safe, liquid investment options that generate modest returns without compromising accessibility.
Banking Relationships: Guidance on selecting banking partners that offer the services, credit lines, and relationship support appropriate for your business stage and needs.
Fraud Prevention: Implementing controls to protect your cash—segregation of duties, approval thresholds, regular reconciliation, and secure payment processes.
