Working Capital and
Cash Flow Management

Planning for future cash flows in advance can empower you to cushion—or even avoid—financial blows to your business. Let’s look at some common cash flow issues and how proper management and sound accounting practices can help you ensure availability of cash to meet your short term liabilities:

  1. Lack of cash reserves
  2. Expensive borrowing
  3. Decreasing sales or profit margins
  4. Outstanding receivables
  5. Uncontrolled business growth
  6. Too much inventory or seasonal changes in demand
  7. Inaccurate forecasting or bookkeeping practices

Any or more than one of the above situations could result in negative or insufficient funds and may hamper short, medium or even long term plans. Each of the above has to be analyzed in light of the dynamics of the industry in which a business is operating, the overall economic environment, competition, customers, company’s own financial structure and its products and services.

What role we can play

We will apply our vast experience to review and analyze each of the critical areas stated above and work with your team to ensure that a robust system is put in place to monitor and control the trade receivables, inventories, trade payables, debts repayment and other working capital items. Once we have set-up such system, it would be a pleasure for us to be engaged with your team periodically to ensure that this process remains intact and continue to benefit the business.