A recent survey clearly showed that 82% of businesses failed through poor cash management, despite many of those businesses still making a decent profit.
Managing the cash flow of a business is absolutely vital but not easy for non-accountants and my Cash Management Programme is designed to address the problem. It includes:
- An initial budgeting/cashflow planning meeting.
- Annual financial projections on a monthly basis for the next 12 months including Profit and Loss Account, Cashflow Forecast and Balance Sheet.
- Monthly cashflow monitoring comparing actual against forecast.
- Quarterly meetings providing accountability for the necessary action required to meet the forecasts.
- Quarterly adjustments to the financial projections if required.