Is your cash flow tighter than you would like?
Do you understand why this is?
Here are some areas to review. What is the business’:
- Profitability – past and more recent
- Working capital position – stock, debtors, WIP
- Status of major projects, any timing issues
- Growth profile – high growth generally absorbs cash
- Seasonality issues
What does the future hold?
Prepare a financial forecast based on the business’ key drivers to gain an understanding of the future.