Managing cash flow

Why is managing cash flow so important?

Companies require cash to maintain competitiveness and fuel future growth strategies. If a company runs out of cash it will experience financial distress or even failure.

Key signs that managing cash flow needs to be reviewed include:

  • underperformance against a business plan;
  • increased creditor days and creditor pressure;
  • HMRC arrears;
  • increased scrutiny from key stakeholders such as lenders or funders;
  • limited cash reserves or working capital headroom;
  • limited visibility on current working capital performance and forecast cash flows.

How do I improve cash flow or overcome a cash flow problem?

RSM can help clients to improve their working capital, optimise their cash flow and minimise the amount tied up in operations. Our team can:

  • identify cash flow requirements to increase business resilience;
  • manage how quickly cash is paid to suppliers and collected from customers;
  • source debt solutions to stabilise a company’s position;
  • release working capital to maximise liquidity;
  • place greater focus on managing cash; 
  • manage future risk by providing an early warning for supply chain payment problems;
  • implement cash flow forecasting models, processes and tools for ongoing monitoring; and
  • identify opportunities to “unlock” cash from a company’s balance sheet, often a hidden source of capital.

How do I find urgent or additional funding for my company?

We understand that organisations often require extra funding which is often driven by growth or acquisitions. RSM can help structure funding or source short term or long term debt solutions.

What are the benefits of improved cash flow management?

  • Improved operational performance;
  • improved strategic decision making and business management;
  • improved relationship with creditors; and
  • a strong cash culture.

Contact us to find out how we can help your organisation with managing cash flow.

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