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Business Consulting

Cash Flow Planning & Forecasting

Many businesses have the knowledge and expertise to market and sell a product, but do not place enough importance on cash flow.

Business Money is a business consulting company that specialises in small business consulting providing SME's expert advice and assistance to better manage and understand their cash flow.

Managing cash flow is a process of clearly understanding the business' cash drivers.

Sales Growth


Gross Profit Margin


Operating Expenses


Trade Debtors in days


Inventory in days


Trade Creditors in days


Net Capital Spending
Increase
Decrease

Increase
Decrease

Increase
Decrease

Increase
Decrease

Increase
Decrease

Increase
Decrease

Absorbs Cash
Releases Cash

Absorbs Cash
Releases Cash

Absorbs Cash
Releases Cash

Absorbs Cash
Releases Cash

Absorbs Cash
Releases Cash

Releases Cash
Absorbs Cash

Absorbs Cash

Businesses that do not implement sufficient credit management policies or do not have an understanding of their cash drivers may be susceptible to liquidity problems and may face the possibility of insufficient cash resources to pay its creditors as and when they fall due.

Many businesses fall victim to the theory that "if you sell more, you make more money". In fact it can be sometimes the very opposite. A business opportunity which results in an increase in sales does not necessarily result in an increase in profit; however an examination of cash drivers will show that an increase in sales will inevitably lead to management re-evaluating its cash position.

Irrespective of whether the business is a retailer, manufacturer or a service provider, cash flow forecasting is an integral part of cash flow planning. Management must understand what the business's cash flow position is on a daily, weekly or monthly basis, to make accurate and reliable business decisions on behalf of the business owners.

Our business consulting services aim to assist businesses with their business and credit management strategies, in particular whether the business strategies will increase profit and what effect it will have on cash. We can also assess whether the business has the strength to fund its growth plans or offer alternative funding strategies.

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