PLANNING
Understand when cash may arrive and when it is needed.
Profit and available cash answer different questions. Cash-flow planning focuses on the timing of receipts, payments and commitments. We help organise a practical forecast so management can examine possible pressure points before deciding how to respond.
Establish the opening position
We agree the bank and cash accounts included, reconcile the starting information where scoped and collect known commitments. Receivables are reviewed for expected collection timing rather than assumed to arrive on the invoice due date. Payroll, supplier obligations and planned expenditure are considered within the selected horizon.
Model timing transparently
The forecast separates confirmed amounts from estimates and records the assumptions behind payment and collection dates. Scenarios can examine delayed receipts or changes in spending. Transfers and financing movements should be represented consistently so that the same cash is not counted twice.
Keep the plan connected to reality
A rolling review compares expected and actual movements, explains significant differences and refreshes the next periods. Deliverables can include a cash schedule, assumptions and an action discussion. Decisions about borrowing, investment or payment priorities remain with management and any appropriately engaged advisers.
Common questions
Can a profitable business still face a cash shortage?
Yes. The timing of receipts and payments can differ from the period in which income and costs are recorded.