Cash Flow

When most companies conduct a cash flow analysis, they usually analyze the P&L statement. Unfortunately, this is not the most effective approach to optimize cash flow. The P&L documents the results or outcomes, but cash flow is hidden in many places throughout the organization. Our cash flow strategist leads a team that conducts a strategic, operational and functional analysis of your organization and uncovers areas where you likely have directly or indirectly invested cash that is not generating optimum return on investment. Areas such as utilities, maintenance, machine utilization, personnel allocation, supplier relations, financial policies and procedures and many other areas are analyzed. Our program helps you capture that cash flow so you can strategically reallocate it to grow your business. 

            Cash Flow Needs Assessment: Identifying cash flow opportunities beyond the balance sheet and profit and loss statement can result in more cash for investments or other projects. The assessment consists of a combination of observational and interviewing techniques throughout the operational and functional areas of the organization resulting in a formal report that identifies (often hidden) cash flow opportunities.    

            Cash Flow Analysis and Plan of Action: Once a cash flow assessment has been completed and key areas identified, an analysis takes place to determine possible cash flow solutions to capture all or most of the cash flow opportunities. Both quantitative and qualitative analysis is conducted resulting in a plan of action. Examples might include buy-versus-lease options, outsourcing opportunities, contract personnel, etc.    

            Cash Flow Optimization: Implementing a cash flow plan of action involves practical approaches and decisions related to both operational and functional levels. In order to optimize the cash flow possibilities resulting from an analysis, specific actions are implemented throughout the client organization, resulting in verifiable cash flow that can be driven toward the bottom line.      

            Cash Flow Sustainability: Discovering and capturing cash flow possibilities and optimizing cash flow can dramatically and positively impact the financial status of an organization. In order to retain these cash flows, specific policies and procedures are created and implemented at both the operational and functional levels to prevent cash flow inefficiencies from occurring in the future.