Cash Flow & Financial Planning
Even the healthiest businesses can improve their cash flow, usually. How does a business benefit from increasing cash flow?
- More cash on hand can reduce borrowing needs, and interest costs.
- Collecting customer receivables faster increases cash on hand and reduces bad debt risk.
- Additional available cash can be redirected towards investments in growth opportunities without incurring debt.
- Increased cash can generate higher shareholder dividends and/or executive bonuses.
- Cash on hand reduces risk in the event of an unexpected business slow down.
- Rapidly growing businesses need to extra cash to fuel growth.
Financial planning and cash flow go hand in hand. A financial plan is your guide, or map, of where you want the business to be at specified future dates. The financial plan is a key benchmark against which to measure executive performance. A simple financial plan, including cash flow targets, is a great motivational tool for the leadership team.
Kase Orion Chief Financial Officers and Controllers are experienced at working with your team to develop appropriate cash flow targets and financial plans. Through effective financial planning, we help take your business to the next level.
If you need help with cash flow and financial planning, including developing new line of business financial forecasts and return on investment analysis, call us today.