Cash Flow Management

At the CFO level, cash-flow management is strategic: building a rolling forecast, managing the working-capital cycle, and planning ahead for funding gaps and surpluses, so the business can grow without being caught short of cash.

The firm builds and maintains the cash forecast and helps manage the levers — receivables, payables, inventory, and funding — that drive it.

Cash-flow management includes:

• A rolling cash-flow forecast
• Management of the working-capital (cash-conversion) cycle
• Identifying and planning for funding gaps
• Scenario and sensitivity analysis on cash
• Coordination with funding and banking arrangements

1. 01

   Build the forecast

   Construct a rolling cash-flow forecast from the business's drivers.

2. 02

   Manage the cycle

   Work the receivables, payables, and inventory levers.

3. 03

   Plan funding

   Anticipate gaps and arrange or plan funding ahead.

4. 04

   Review

   Update the forecast and report on the position regularly.

PBT keeps cash flow ahead of the business, not behind it.

• A rolling forecast that anticipates the position
• Active management of the working-capital cycle
• Funding gaps planned for in advance
• Coordination with your banking and funding
• Scope, deliverables, and fees agreed in writing up front

• How is this different from operational cash management?

  Operational cash management is the day-to-day position; this is the strategic, forward-looking forecasting and working-capital and funding planning at the CFO level.

• Can you help reduce my working-capital cycle?

  Yes. We analyse the receivable, payable, and inventory days and help shorten the cash-conversion cycle.

• How long does it take?

  Building the forecast takes a couple of weeks; it's then maintained on a rolling basis.