Cash and Working Capital Management

Crisis cash management

Action to preserve cash is needed during the crisis stage of a business turnaround. We develop and deliver short term cash forecasts working with the business’ management team to ensure that the cash forecasting methodologies are tailored to the business and remain embedded in the company after our work is done. During this stage of our work we can also identify working capital levers creating a target list of actions for stock, debtors and creditors.

Stabilisation

It is during this stage of a business turnaround that the cash preservation techniques can be supported by working capital reduction and cost improvement programmes.

The techniques we employ are:

Short term cash forecast:  We are accomplished in the development of short term cash forecasting models which are built based on an “integrated model” (Profit and Loss, Balance Sheet and Cash Forecast) of the business.

Credit management:  We review the business’ credit policy and work with the business to improve hands-on credit control skills and collect cash tied up in aged debtors.

Performance dashboard / Key performance indicators: We work with management to identify the key performance indicators for the business. Often we use this to create a performance dashboard as a useful tool for managing and reporting on the business.

Hands-on staff: Our staff all have an operational background making us able to lead by example and coach your staff in the techniques we employ.