Income and payments — You likely have many different sources for each and need to stay on top of them to manage your obligations and plan for future business growth. If you’re a high-growth company, cash flow management is doubly important. It can dictate future opportunities and provide valuable insights into the development of your business practices.
Here at Compass East, our experts provide cash flow management and consulting services with a specialty in fast-growing businesses. Our skilled professionals are well-versed in these areas and can bring you better control of your cash flow.
What Is Cash Flow Management?
Cash flow management is all about tracking the money that goes into and out of your business. You likely already have a rough idea of what this looks like, but precise data is necessary for more accurate reporting and insights. This information can tell you more about trends, forecasts and accounting problems. Cash flow management calls for tracking finances accurately, maintaining minimum cash requirements, planning for future payments and keeping available funds from piling up, along with other tasks.
How Our Consultants Handle Cash Flow Management
At Compass East, our cash flow management consulting services start during the implementation phase, when we reinvent your financial system to meet your growing business’s needs. We deliver business cash flow forecasting services with our suite of reporting tools and infrastructure. Our cash flow forecasting specialists build a cash forecasting engine from the bottom-up, connecting your historical financial data to your present and future financial vision. We complete the tactical cash forecast operations through:
- Detailed recurring expenses debiting from bank accounts and credit cards.
- Detailed credit card payment dates and projected balances.
- Expected customer collection cycles.
- Provision for unexpected payments and vendor payment plans.
- Expected technology builds and fixed asset additions.
- Expected new hires and labor costs associated with growth.
Once we have a clear understanding of the monthly fixed and variable costs, timing of Accounts Payable/Accounts Receivable (AP/AR) and projected new hires based on company benchmarks, we work to pull necessary data from your customer relationship management (CRM) program and pipeline management tools to provide an accurate projection of your upcoming revenue opportunities. With projected revenue, costs and a hiring plan in place, Compass East can deliver accurate short- and long-term cash projections and runway.
The Benefits of Working With Cash Management Consultants
When you work with a cash management consultant, you take advantage of a wide range of benefits:
- Reducing risk: With an expert on your side, you can prevent the unforeseen risk that comes from insufficient planning. Our team can better prepare you financially for surprise expenses and help make sure you don’t run out of cash.
- Managing cash burn: If you don’t have a clear picture of your cash flow, it’s easy to spend too much. Cash flow management consultancy ensures you know what to expect and what you have to spend so you can work within your means and appropriately manage your cash reserves when necessary.
- Growing your business: More cash means more money to spend growing your company. We can help you optimize growth opportunities through proper balance of your cash resources.
- Establishing profitability positions: Various business partners, loan providers and other entities will often need to see examples of a business’s viability, especially start-ups and high-growth companies. By managing liquidity, you can put yourself in a better position to validate your business model and vision.
- Enjoying greater visibility: When making business decisions, you want to have all the information in front of you. Cash flow management delivers a more accurate picture of your financial landscape, so you can better understand your options and position.
- Creating insights: Cash flow trends can be an excellent indicator of where you can make business improvements. A business cash flow forecast takes advantage of this information and provides predictions for further cash flow management and possible business practice adjustments.
The advantages of cash flow management are wide-reaching, but they’re best delivered by a team of experts. Our cash flow management advisory services put the skills of a comprehensive range of financial professionals at your disposal, all with significant experience in the industry. Plus, outsourcing your cash flow management can help you find these benefits at a fraction of the cost of hiring an in-person team.
Your Cash Flow Management Experts
Compass East specializes in finances for high-growth businesses, and cash flow management consulting is just one element of our extensive portfolio of services. Finances are already tough, especially when you’re working in a fast-growing business where your needs are rapidly changing. Between new people on payroll, new product lines, outpaced systems, fluctuating income and other factors that come with a high-growth company, we can address your organization’s needs.
Our extensive experience in this area gives us the skills needed to manage quickly changing financial landscapes and put you in the best position possible for business growth. We use cloud-based financial technology and a bottom-up process that delivers a holistic view and scalable services.
We aim to take the complexity out of accounting and make it easier for you and your team to focus on what’s important.