Issues/description
A lack of cash can equally be a problem for a highly successful company that is growing at a faster rate
than they can support (over trading), or for a company that is either struggling for sales or not collecting
overdue debts.
We will uncover the causes of weak cashflow, giving you both a short term fix and a long term solution.
This may be via a bank, a cash investment or loan by the owners, or a sale of a portion of the company to an
investor (equity). Or it might just be that we help you to figure out a smart way to release cash stored up in
debtors or unproductive costs.
We will examine:
- How much assured money is coming in (Income)?
- Where is it coming from?
- How much money do you have going out (Expenses)?
- Why is it going out?
- Is it giving a return?
- Why not?
- How much of a cash reserve do you have?
- What is the relationship between fixed and variable costs?
- What is your current level of borrowing?
We will
Ensure that you have enough cash to continue running your business. This is your company's lifeblood and
even a successful business can find itself lacking cash. With this in mind, we will audit your company
systems in order to establish your current position and what/how much you will need for the immediate future.
Examine how profitably you trade and how this can improved.
To achieve both objectives we will:
- Examine your sales and expenses to better understand you current position
- Analyse your profitability by job to help prioritise your workflow
- Investigate your purchasing to ensure you are receiving the best prices
- Break down your expenses to find unproductive costs
- Review your debtors and creditors, payment terms and invoicing
- Ensure that you are always aware of your current position through good accounting practices
- Identify sources of borrowing or investment
Deliverables — what you will get from this
- Cash in the bank
- Good margins
- Consistent profits
- Security
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