Managing cash flow on a lasting basis
A rolling plan, three essential indicators, and the discipline of acting before pressure arises rather than during it.
By Advisory, legal and organisation
Monitoring today's bank balance is an observation, not cash-flow management. It indicates where you stand, rarely where you will stand in six weeks.
A rolling plan over a quarter
Far enough to anticipate a tax deadline or an investment, close enough for collections to stay predictable. Each week you shift the window and update actuals.
Three indicators are enough
Average customer collection delay, working-capital need in days of activity, and the lowest cash point expected in the window. The rest can be followed by the firm.
Act before, not during
A low point identified several weeks ahead is handled with a reminder, a spread or a financing structure. The same low point found the day before is handled in a rush.
