Cash Flow

Issues/description

A lack of cash can equally be a problem for a highly successful company who is growing at a faster rate than they can support (over trading), or for a company who is either struggling with sales or not collecting the income that they are due.

We can discover the cause of your cash flow problem giving you both a short term fix and a long term solution. This may be via a bank, a capital (cash) investment by the owners, or a sale of a portion of the company to an investor (equity). Or it might just be that we help you to figure out a smart way to release cash stored up in debtors or unproductive costs.

You will need to examine:

• How much assured money is coming in (Income)?
• Where is it coming from?
• How much money do you have going out (Expenses)?
• Why is it going out?
• Is it giving a return?
• Why not?
• How much of a cash reserve do you have?
• What is the relationship between fixed and variable costs?
• What is your current level of borrowing?

We will

Ensure you have enough cash to continue running your business. This is your company's lifeblood and even a successful business can find itself lacking cash. With this in mind, we will audit your company records in order to establish your current position and what/how much you will need for the immediate future.

Examine how profitably you trade and how this can improved.

To achieve both objectives we will:

• Examine your sales and expenses to better understand you current position
• Analyse your profitability by job to help prioritise your workflow
• Investigate your purchasing to ensure you are receiving the best prices and don't waste money
• Break down your expenses to find unproductive costs
• Review your debtors and creditors, payment terms and invoicing
• Ensure you are always aware of your current position through good accounting practices
• Identify sources of borrowing or investment

Deliverables —what you will get from this

• Cash in bank
• Good margins
• Consistent profits