Manage cash flows with ease !

Is your business struggling to manage cash flows? Don’t worry ! We will help you streamline cash flows.

 

Managing Cash flow

Cash flow is lifeblood of every business. Just like regulating blood pressure, cash flows have to be managed precisely. Neither too little cash is good for the business, nor too much surplus a good sign. Optimum cash levels are always in context of a particular business. It is because of this very reason, most businesses struggle regulating cash flows. Entrepreneurs and business managers run operations very good but when it comes to cash flow management, they generally struggle. This is because every business has its own optimal cash level, optimal debt to equity mix, and its own cash flow cycle.

To manage cash is not simply managing balance at bank. It involves entire working capital management i.e.

  1. cash & bank including short term borrowing,
  2. debtors,
  3. creditors, and
  4. inventory / stocks.

Cash flow management generally involves following steps:

  1. Identifying complete cash flow cycle of a particular businesses
  2. Identification and evaluation of debtors’ cycle, creditors’ cycle, and inventory cycle.
  3. Projecting short-term and long-term cash flows also know as cash flow forecasting.
  4. Appreciation of potential cash shortfalls and identification of methods to fill the gaps
  5. Strategising to improve life cycle of each element of the cash flow e.g.
  • Reduce debtors cycle by incentivising early payments or discounting invoices etc.
  • Increase creditors cycle by negotiating better terms with suppliers or finding another supplier etc.
  • Reducing inventory levels and increasing inventory turnover etc.

6. Preparing and implementing working capital management policy and procedures

Cash flows can be managed appropriately only when we understand business dynamics and future outlook. In the presence of well defined plan and methods of monitoring and control, cash flow management becomes SUPER EASY !

How we do it

We have devised simple process :

  1. We sit with you and understand your business dynamics and your requirements.
  2. We evaluate meticulously each element of the working capital.
  3. We present our findings with suggestions and obtain feedback.
  4. We provide you a plan of action along with projected cash flows. This becomes your future cash flow budget.
  5. If required (in fact it is very essential), we also prepare working capital management policies & procedures.
  6. We work with you on regular intervals assisting you managing working capital.

Working capital management is complex but it becomes SUPER EASY if approached systematically and with clear plan of action ! At Devanch we work with you in making your business CASH RICH while keeping things SIMPLE !

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Contact us

Phone us: 1300 090 777

Service Areas

Queensland: Brisbane, Cleveland, Logan City, Beenleigh, Gold Coast, Ipswich, Sunshine Coast

New South Wales: Sydney, Paramatta, Bayside Council (Rockdale), Shellharbour

Brisbane Office: Office 24, 138 Juliette Street, Greenslopes, QLD 4120, Australia

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