Cash Flow Management & Modelling
What is Cash Flow Modelling?
Cash flow modelling and management is the process of tracking and proactively managing a business’s inflows and outflows of cash. This helps management predict how much cash will be available to the business in the future days, weeks and months. It also enables management to identify and plan for the cash requirement to cover debt and future expenses. In a time of economic downturn or financial distress it is the single most important tool for managing the business.
How do we do it?
We perform cash flow management by detailed daily analysis and interrogation of the cash flowing through the business’s bank account/s on a daily, weekly and monthly basis.
We have developed a cash flow modelling tool which enables us to increase the accuracy of forecasting to over 95%. This is done through daily interrogative analysis of cash movement in the organisation and from this we gain a detailed understanding of the inflow and outflow of cash at a transactional level, constantly assessing the veracity of management’s assertions and the extent to which these can be relied upon. This allows us to establish a far more accurate picture of the short-, medium- and longer-term cash situation allowing us to make well-informed decisions on where and when to incur expenditure, be it cost of stock, expenses, or investment in assets.
Why EBT?
We employ our cash flow modelling expertise as matter of course in all our business turnaround and rescue projects. In a turnaround situation, cash flow management is the difference between success and failure. Our team has extensive turnaround experience and therefore a deep appreciation of the importance of cash flow management in any business, especially distressed businesses, and can advise you from a background of personal experience.
Is this the right solution for you?
If your business is:
Experiencing cash flow challenges due to liquidity constraints.
Finding it difficult to accurately predict your cash requirements.
our cash flow modelling expertise will make decision making a lot easier.
Give us a call for a no-obligation high-level confidential discussion on how best to proceed.