Cash flow management

Business assessment services

Why is cash flow so important?

A company’s cash flow could be compared to person’s vital signs. From looking at your cash flow you can understand how your operations are running, where the money is coming from, and how the money is being spent. Therefore, companies require cash to maintain competitiveness and fuel future growth strategies. If a company runs out of cash it will experience financial distress or possibly even failure.

Key signs that your company should review cash flow needs include:

underperformance against a business plan;
increased creditor days and creditor pressure;
Revenue arrears;
increased scrutiny from key stakeholders such as lenders or funders;
limited cash reserves or working capital headroom;
limited visibility on current working capital performance and forecast cashflows.

How do I improve cash flow or overcome a cash flow problem?

The RSM team work with our clients to improve their working capital, optimise their cash flow and minimise the amount tied up in operations. We can:

identify cash flow requirements to increase business resilience;
manage how quickly cash is paid to suppliers and collected from customers;
source debt solutions to stabilise a company’s position;
release working capital to maximise liquidity;
place greater focus on managing cash;
manage future risk by providing an early warning for supply chain payment problems;
implement cash flow forecasting models, processes and tools for ongoing monitoring; and
identify opportunities to “unlock” cash from a company’s balance sheet, often a hidden source of capital.

How do I find urgent or additional funding for my company?

We understand that organisations often require extra funding which is often driven by growth or acquisitions. RSM’s Restructuring Advisory team hold longstanding relationships with the major debt providers in the market which we can tap into in helping our clients source short term or long term debt solutions.