Understanding your short term (13 week) cashflow forecast is critical for any business to enable effective day to day cash management and minimise borrowing. A robust update process and short term cashflow forecast (STCF) is especially useful where headroom is limited and cash is reported externally.
How we can help
We can assist in identifying the cash position as well as the impact of various initiatives and scenarios. We work with management teams to design and build fit for purpose STCF models which can be sustainably operated by the management team.
- Assess if we can build on and improve an existing forecast or create a new model if necessary
- Review existing associated processes and make recommendations for improvements
- Analysis of actual weekly cashflows and variance analysis to forecast, to better inform the forecast view
- Understand the impact of additional items, i.e. trapped cash, FX and invoice discounting
- Creation a streamlined updated process including update for latest ledgers, actual cash received, actual cash paid and expected timings of future receipts and payments
- Reconcile short term cashflow output with your medium term cash flow model
- Include sensitivity and mitigation functionality to enable the running of scenarios in real time
- Develop summary outputs for third parties that show the impact on headroom and covenants