The Business Survival Toolkit – focus on Cashflow Management

Updated: Apr 13, 2020

With the sudden Corona Pandemic, many Businesses have found themselves in difficult positions.

There is now a greater need for accurate Accounting records , Financial Modelling and Cashflow Management.

So, we have 4 legs here :

1. Accurate Books

2. Accurate Reports

3. Financial Model – Budgets

4. Daily Cashflow

I have always been a big fan of the Daily Cashflow model. The Bank Statement never lies. Not only is it important to look at the Cashflow History, but look at the future inflows & outflows. I have setup , developed many Daily Cash flow models in Excel which have been used by bookkeepers and Management as a key tool to understand and plan the business. This should include : daily Cashflow Forecast, Monthly Summary and Dashboard. This is the key for many SME’s.

I know that it is easy put your head in the sand and hope for the best. It is painful to look at the hard facts, but is a necessary part of survival and growth for Companies.

So, where does one start ?

1. CFO's, CEO’s and Business Owners need to get their Bookkeepers,Accountants to set up a good Daily Cashflow. It does not need to be complicated . (I am happy to provide templates , or assist in the setup/modification here)

2. One set up, this needs to be updated daily with the actual Bank movement , and forecasts for the next month needs to be inserted in the Model from the underlying accounting records – Debtors – Creditors , payroll etc . No short cut can be taken.

3. A good Model includes a 12 month rolling forecast

4. This needs a full daily review!! 4 eye Policy

5. Plug any holes in the cashflow in advance – Chase Debtors , re-organise Liabilities , cut costs etc.

Once this in place, then Businesses have the tools to survive , grow and approach Bank and Lenders

With that in mind when approaching Lenders. Businesses will clearly need to show that their business were viable before, and their forecasts going forward. The more UpToDate, the more accurate and clearer presentation is will greatly help.

So, Companies in need to reach out to their Accountants, Freelance CFOs/FD’s as a matter of priority as time is essence. Companies need more than before need clearer oversight, and Financial Information.

At a minimum, Companies, SMEs need to have :

· UpToDate and Accurate Management Accountants

· Review of Debtors and Creditors

· Review of immediate Cash Flow Needs

· Revised Forecast / Budget

· Extra Professional View for Accuracy, Presentation and Reality check

This Information is not only required for Lenders, but also for all Companies to put them into better position to survive.

If you are in need of any Financial Assistance, please feel free to reach out to me on a confidential basis to I have extensive experience in the UK, Israel and South Africa working with distressed Companies in a range of Industries from Technology, Online, Distribution, Construction, Real Estate to Financial Service Companies, where I have assisted Companies in providing the list of items as mentioned above. These services are provided through, an ACA UK boutique Accounting firm with an ICAEW practise certificate.

In these trying times , I am happy to provide a free desk top review / consultation for selected Companies. Please feel free to reach out to me.

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