Cashflow management support for business owners
Plan, monitor and improve your cashflow
A healthy profit is important, but profit doesn’t always mean there’s cash available when you need it.
The timing of customer payments, supplier costs, tax, debt repayments, investment and growth can all affect the amount of cash available in your business. Cashflow Management helps you look ahead, understand what’s driving your cash position and plan for periods when money may be tighter. At ilumin, we’ll help you develop a realistic Cashflow Forecast, understand your Cash Conversion Cycle and identify practical actions that could improve the flow of cash through your business.
The result is greater visibility, fewer surprises and more confidence when making decisions about what your business can financially support.
Cashflow forecasting
We’ll prepare a Cashflow Forecast showing the expected movement of money into and out of your business.
This helps you see what could lie ahead and identify periods when additional cash may be needed before they become urgent.
Cashflow reviews
A forecast is most useful when you understand what it’s telling you.
We’ll work through your forecast with you, discuss the assumptions behind it and identify areas that may need your attention.
Cash conversion cycle
Your cash conversion cycle looks at how long it takes for money invested in delivering your products or services to make its way back into your bank account.
We’ll help you understand that cycle and identify opportunities to shorten it.
Payment timing
When money arrives and leaves your business can have a significant effect on the cash you have available.
We’ll help you understand the timing of important inflows and outflows so you can plan for periods when cash may be tighter.
Debtors and creditors
The time customers take to pay and when you need to pay suppliers both affect cashflow.
Understanding those patterns can help identify opportunities to improve how cash moves through your business.
Cashflow improvement actions
Where we identify opportunities to improve your cash position, we’ll help turn them into practical actions.
Depending on the service you choose, that can include 12-month goals and focused 90-day actions.
Monitoring actuals against forecast
Things rarely happen exactly as planned.
Monitoring actual cashflow against your forecast helps you understand what has changed, why it changed and whether you need to adjust your plans.
When does cashflow support help most?
You don’t need to wait until cashflow becomes a problem before you start planning.
It can be particularly valuable if you:
Before the new financial year, when you want greater visibility over the year ahead.
During periods of growth, when additional activity can place pressure on cash.
When you’re preparing to hire, and want to understand the ongoing financial commitment.
When tax payments feel tight, and you need better visibility over upcoming obligations.
When profit looks healthy but cash feels low, and you want to understand why.
Before applying for lending, when a forecast can support discussions with your financier.
When planning significant investment, and you want to understand its impact on available cash.
What you will walk away with
Cashflow Management is about giving you greater visibility and control over what’s happening with your cash.
You’ll come away with:
A 12-month Cashflow Forecast
Helping you see expected cash movements ahead.
Greater visibility over pressure points
So significant outflows are less likely to take you by surprise.
A better understanding of your cash conversion cycle
And what influences it.
Practical improvement actions
Where opportunities to strengthen cashflow are identified.
Greater confidence making decisions
With a clearer understanding of what the business can financially support.
When to have a cashflow review
A Cashflow Review can be useful at any time you want a clearer picture of what’s ahead, but it’s particularly valuable before cash becomes tight.
You might consider a review:
- Before the start of a new financial year
- During a period of growth
- Before hiring or making a significant investment
- When tax payments are putting pressure on cash
- When profit looks healthy but the bank balance doesn’t
- Before applying for lending or finance
- When actual cashflow is tracking differently from your forecast
The earlier you review your cashflow, the more time you have to understand what’s changing, adjust your plans and make informed decisions before pressure becomes urgent.
How does cashflow management work?
We offer two levels of support depending on what you need.
Cashflow Forecast
We’ll prepare your Cashflow Forecast and input it into your accounting or reporting software.
You’ll then have a one-hour review meeting with us to discuss and finalise the forecast and make sure you understand what it means for your business.
Cashflow Management Coaching
If you want more ongoing support, Cashflow Management Coaching combines your forecast with a three-hour coaching session.
Together, we’ll identify your Cash Conversion Cycle, explore the likely causes of cashflow pressure and establish 12-month and 90-day improvement goals and actions.
That initial session is followed by four quarterly accountability sessions to review progress and help you put your cashflow strategies into practice.
Why can my business be profitable but still have low cash?
Profit measures financial performance, while cashflow looks at when money actually moves into and out of the business. Debtors, tax, debt repayments, stock, investment and timing differences can all mean profit doesn’t immediately translate into cash in the bank.
How far ahead will we forecast?
The service includes a 12-month Cashflow Forecast, giving you visibility over expected cash movements during the year ahead.
Can you help me improve cashflow rather than just forecast it?
Yes. Cashflow management coaching goes beyond forecasting to identify what is affecting your cash position and establish practical improvement actions.
Can a cashflow forecast help when I'm applying for finance?
Yes. A forecast can provide useful information when discussing lending requirements and future cash needs with your bank or financier.
Get more control over your cashflow
Understanding what’s coming gives you more time to plan, respond and make informed decisions about your business.