Cash flow
management services

Cash flow management is the process by which an organisation watches over and controls the inflow and outflow of funds. Efficient cash flow management ensures that inflows are always higher than outflows, which is necessary to keep the business in a surplus and have cash on hand for emergencies. Another function of cash flow management is to ensure that surplus funds are invested wisely to maximise business returns.

There are multiple benefits to keeping tabs on your cash flow, including reduced stress about payments, higher accuracy in accounts, better cash predictions, more efficient insights into when to expand the business, and greater leverage. Reach out to learn more about Golding’s cash flow services today!

Low cash levels could lead to concerns about whether suppliers can be paid on time, employees can receive their salary in full, you can pay yourself a wage and business expenses will spill over into your personal expenses. In short, if you have cash flow problems, the very stability of your business is at stake.

Absolutely! Seasonal fluctuations can be a significant challenge for businesses. Here’s how we can help:

• Identify seasonal patterns: Analyse your historical financial data to identify patterns in your cash flow throughout the year and understand your peak and off-seasons.
• Cash flow forecasting: Create a detailed cash flow forecast for the entire year, incorporating seasonal trends. Identify periods of high and low cash flow, allowing for proactive planning.
• Develop a cash flow management plan: To address seasonal fluctuations, create a strategy that includes insights from the analysis and forecasts and the following aspects.
• Cost management: Identify areas to reduce expenses during peak seasons, allowing you to build a buffer for slow periods, such as negotiating better deals with suppliers or delaying non-essential purchases.
• Inventory management: Optimise inventory levels to minimise the risk of excess stock during slow seasons. This could involve stocking up on inventory during off-peak seasons and offering discounts during peak seasons to move excess stock.
• Revenue generation: Explore ways to generate more income during slow periods, such as offering seasonal promotions, launching new products or services, or expanding your marketing efforts.
• Financing options: Consider short-term financing options, such as overdrafts or loans, to bridge cash flow gaps during peak seasons.

• Financial planning: Develop a comprehensive financial plan that outlines growth objectives and associated cash requirements. Conduct a thorough financial analysis to assess the feasibility of your expansion plans.
• Investment opportunities: Evaluate potential investments using net present value (NPV) and internal rate of return (IRR) to determine their profitability.
• Identify funding options: To secure the necessary capital, explore various funding options, including bank loans, equity financing, or government grants. Consider the cost of different financing sources and their impact on your cash flow.
• Cost control: Implement cost-saving measures to maximise cash flow, such as reducing unnecessary expenses and negotiating better deals with suppliers.
• Working capital management: Optimise your working capital by efficiently managing inventory, accounts receivable, and accounts payable. Implement effective credit control measures to minimise late payments.

• Clear communication: Establish clear payment terms and communicate them effectively to customers. Send timely reminders and follow up on overdue payments.
• Incentives and penalties: Offer discounts for early payment to encourage prompt settlement. Implement late payment penalties to discourage delays.
• Credit policy: Implement a robust credit policy to assess customer creditworthiness before extending credit.
• Review credit terms: Reevaluate your credit terms and policies to minimise the risk of late payments. Consider tightening credit terms for repeat offenders or customers with a history of late payments.
• Credit insurance: Explore credit insurance to protect your business against losses due to customer defaults.