13 week Cash Flow Forecasting

Events are moving very fast. The COVID-19 pandemic is the main topic on the news. Already we are hearing news of profitable and well managed companies needing to take drastic action to maintain headroom. The ability to simply trade in the short term in many sectors is being compromised as a result of lockdowns globally. Many other sectors are also experiencing quite dramatic and serious challenges. Whilst businesses need to continue to focus on retaining the core business fundamentals that have made them successful, in the immediate term, survival is of the essence.

There are many actions companies can take – all of which focus on improving the immediate cash position and identifying and addressing existential risk.

Having a robust 13 week cash-flow forecast will assist in your communication with the banks and other key stakeholders as it better monitors debt covenants, debt service coverage ratio, cash conversion cycle, and debt capacity.