Cash Flow Planning
Plan your Cash Flow. Work your Cash Flow.
Your business is profitable. Where’s the cash?
We believe Cash Flow Planning is the most critical planning that is done for the business. Using cash collection and outlay information, this planning predicts what the business can expect their cash balance to be on a weekly and monthly basis.
Knowing what the cash balance is expected to be is powerful information for managing the business. Whatever cycle the business is in – growth, seasonal, or stable – knowing the expected cash balance gives management the information to make decisions for business progress and success.
Using the PEK Cash Flow Excel Planning Template, we determine what the future cash balances are expected to be. As a month completes, we update the plan with actual collection and outlay information. You adjust cash decisions with an updated plan; the plan validates what the future cash balance is expected to be.
Creating a Cash Flow Plan for your business involves knowing:
- Cash Collections by week and month
- Cash Outlays for Operating Expenses by week and month
- Cash Outlays for Inventory Purchases by week and month
- Debt Payments by week and month
- How the business bank accounts interact
Having a Cash Flow Plan for your business is critically important. You need this information to manage your business for growth and profit.
Cash Flow Meeting
Cash Flow consulting fees are quoted on an hourly basis and determined after an initial no-charge Cash Flow Planning meeting. During this meeting, the consulting fees are determined according to:
- Number of months to project Cash Flow future months
- Projection versus actual validation plan