Cash Management Solutions

Burned through Series A in 8 months. Here's the cash management framework that saved us. Growing fast and running out of money isn't ironic - it's predictable. Revenue growth without cash flow discipline kills more promising startups than product failures. The 5-3-1 Cash Rule: • 5 months: Minimum runway before raising next round • 3 scenarios: Best case, likely case, worst case planning • 1 person: CEO owns cash flow, updates weekly Monthly cash flow tracking essentials: contracted ARR, pipeline probability, fixed vs variable costs, and customer payment terms. Real example: SaaS company with $200K MRR looked healthy until we mapped payment terms. 60% of revenue came with 60-day payment cycles. They needed bridge funding despite strong growth metrics. Build a 13-week rolling cash flow model this Friday. Update every week without exception to avoid cash crunches. #CashFlow #StartupFinance #Fundraising #StartupAdvice #BusinessMetrics #Entrepreneurship #StartupStrategy #FinancialPlanning

Cash is the lifeblood of every business. Yet too often, CFOs can’t see beyond their next few bank deposits. That’s why the 13-week cash flow forecast has become the gold standard. It bridges the gap between daily cash management and annual budgets, enabling finance teams to spot shortfalls 8–10 weeks before they hit. I've seen firsthand how easy it was to get blindsided by timing mismatches, being solvent on a monthly report, but squeezed in the middle of the month. A weekly rolling view solves that problem and turns finance from reactive firefighters into proactive advisors. What makes it even more powerful today is automation. Using platforms like Abacum means you can eliminate the heavy manual work. → System integration: Direct connections to accounting systems → Data validation: Automatic checks for missing or inconsistent data → Variance analysis: Automated comparison of forecast vs. actuals → Collaboration tools: Workflows for cross-department input → Version control: Clear tracking of changes and assumptions The result? Sharper visibility, fewer surprises, and a finance team that’s always in control.

I once thought cash flow management was just about having money in the bank. Boy, was I wrong. As a fractional CFO, I've seen businesses with full accounts go under. Why? They couldn't predict their future cash needs. Here's what I've learned: 1. Forecasting is your superpower Create multiple scenarios. Best case, worst case, likely case. 2. KPIs are your early warning system Track DSO, inventory turnover, operating cash flow religiously. 3. Supplier relationships are gold Negotiate terms. Build trust. It's a two-way street. 4. Diversification isn't just for investments Multiple income streams = cash flow stability. 5. Regular cash flow reviews are non-negotiable Monthly, at minimum. Weekly during turbulent times. These strategies have helped my clients navigate economic uncertainty and drive growth. What's your top cash flow management tip? #CashFlowManagement #FinancialStrategy #FractionalCFO #StartupFinance #Growth #CFOInsights #CFOServices #Strategy #SMBgrowth #StrategicFinance #SmallBusinessSupport #StartupFinance #SMBfinance #ScalingUp

“𝗪𝗲’𝗿𝗲 𝗺𝗮𝗸𝗶𝗻𝗴 𝗺𝗼𝗻𝗲𝘆, 𝗯𝘂𝘁 𝘁𝗵𝗲𝗿𝗲’𝘀 𝗻𝗼 𝗰𝗮𝘀𝗵. 𝗪𝗵𝗲𝗿𝗲 𝗶𝘀 𝗶𝘁 𝗮𝗹𝗹 𝗴𝗼𝗶𝗻𝗴?”   This was the first thing a client said to me on our Zoom call. Their business had doubled revenue over the last two years — but their bank account told a very different story.   I see this a lot. And it’s not because people are bad at running businesses. It’s because growth often hides inefficiencies.   So we dove into their numbers. And here's what we found: 🔹 They were offering generous payment terms to clients — but weren’t getting the same from their vendors. 🔹 Inventory was increasing faster than sales — a classic cash trap. 🔹 Several small monthly subscriptions added up to nearly $3,000 a month. (They were only using two of them.)   In less than 60 days, we: ✅ Tightened their accounts receivable process ✅ Negotiated better vendor terms ✅ Streamlined expenses ✅ Set up a weekly cash flow dashboard   The result? They saw positive cash flow for the first time in 8 months — without adding a single dollar of new revenue.   𝗜𝘁’𝘀 𝗻𝗼𝘁 𝗮𝗹𝘄𝗮𝘆𝘀 𝗮𝗯𝗼𝘂𝘁 𝗲𝗮𝗿𝗻𝗶𝗻𝗴 𝗺𝗼𝗿𝗲. 𝗦𝗼𝗺𝗲𝘁𝗶𝗺𝗲𝘀 𝗶𝘁’𝘀 𝗮𝗯𝗼𝘂𝘁 𝗸𝗲𝗲𝗽𝗶𝗻𝗴 𝗺𝗼𝗿𝗲.   If you're growing fast and still feeling the cash squeeze, you're not alone — and it’s fixable. #CashFlowMatters #BusinessGrowth #FinancialHealth #SmallBusinessTips #CashFlowManagement

34% of SMBs have only a month or less of cash reserves. How do we address this critical issue? Here are 10 essential cash management rules: 1. Understanding Cash Metrics: Focus on operating and free cash flow, not just profits. 2. Building Cash Reserves: Maintain enough cash to cover 3-6 months of payroll, slow months, and unexpected equipment costs. Be cautious in volatile industries. 3. Analyzing Beyond the Bank Balance: Use weekly financial reports instead of just checking the bank balance to better understand cash obligations. 4. Efficient Invoicing: Invoice immediately and manage accounts receivable proactively to ensure quicker payments. 5. Strategic Payment Scheduling: Don’t rush to pay bills; optimize payables for better cash flow and maintain good vendor communication. 6. Inventory Management: Treat inventory as an investment and balance stock levels to avoid cash tie-ups. 7. Growth and Cash Flow: Manage growth carefully by securing credit in advance and understanding the cash conversion cycle to prevent cash shortages. 8. Tax Planning: Treat taxes as a critical expense and work with a knowledgeable CPA to plan for tax implications. 9. Prudent Use of Debt: Use debt strategically to support growth and investment, and maintain diverse banking relationships. 10. Maintaining Flexibility: Develop a flexible business strategy that includes multiple suppliers and cross-trained staff. These strategies can help SMBs manage their cash flow more effectively and safeguard against financial crises. If you want to go deeper, I wrote about this in my newsletter. Please read and subscribe: https://lnkd.in/gP4KXvDU

The Cash & Liquidity Management Cheat Sheet. We know that cash and liquidity are the core of every business that's why I've spent hours summarizing the 10 essentials every Treasury & Finance leader must know: 📌You'll want to save this. 1. Cash Management: Monitor, collect, manage & invest cash. ➔ Collection (faster invoicing & payments) ➔ Concentration (consolidate idle funds) ➔ Disbursement (strategic timing of outflows) 2. Cash Conversion Cycle (CCC): Formula: CCC = DIO + DSO – DPO ➔ Shorter CCC = stronger liquidity. 3. Liquidity vs Solvency Liquidity = meet short-term obligations. Solvency = long-term sustainability. ⚠️ A solvent company can still fail if cash isn’t liquid. 4. Role of Treasury Tactical → Daily positioning & short-term forecasts. Strategic → Long-term planning, funding, advisory. 5. Cash Visibility Challenges: Multi-bank delays, FX restrictions. Opportunities: SWIFT GPI, Open Banking, Treasury Management Systems (TMS), AI-powered forecasting. 6. Working Capital Optimization Receivables: Target DSO < 45 days. Use discounting, factoring, credit insurance. Payables: Target DPO > 45 days. Use supply chain finance. Inventory: Target turnover > 6x (Retail or FMCG). Use EOQ & demand forecasting. 7. Cashflow Forecasting Direct (1–13 weeks): Operational planning. Indirect (1–12+ months): Strategy & funding. Best practice: Maintain a 13-week rolling forecast (it covers a financial quarter). 8. Managing Liquidity Shocks ➔ Maintain 6–8 weeks liquidity buffer. ➔ Diversify credit lines. ➔ Use scenario modeling & real-time dashboards. 9. Cash Pooling & Centralization Physical pooling: Actual cash sweeps. Notional pooling: Virtual aggregation. Benefits: Lower costs, centralized control, FX efficiency. 10. Intercompany Lending & Regulations Must comply with transfer pricing regulations. Benchmark: SOFR, local rates + spread (or as applicable in your region). Regulations: Ensure full compliance. Next Steps for YOU ➔ Real-time visibility across all entities. ➔ Centralized efficiency + local compliance. ➔ Use both direct & indirect forecasting. ➔ Utilize digital tools & fintech. ➔ Ensure compliance with tax & transfer pricing rules. So, even if you’re a CFO, Treasurer, or Finance Leader, this cheat sheet helps you strengthen liquidity, optimize cash, and ensure resilience in any market. ♻️ Repost & Share. 📌 Use as your "screensaver".

Master the Art of Cash Flow Management 1. Analyze and Forecast:To master cash flow, begin with a deep dive into historical data. Analyze past cash flow patterns, identifying seasonal trends and potential fluctuations. Embrace forecasting tools to anticipate future financial dynamics accurately. This strategic foresight equips you to make informed decisions, proactively addressing challenges before they arise. 2. Optimize Working Capital:Unlock the power of working capital to bolster your cash position. Streamline inventory management, negotiate favorable payment terms with suppliers, and expedite the conversion of receivables into cash. By optimizing your working capital cycle, you can enhance liquidity and ensure a steady cash flow stream. 3. Embrace Technology for Automation:In the digital age, leverage technology to automate cash flow processes. Implement robust accounting software, integrated with cash flow forecasting tools. Automation not only reduces manual errors but also provides real-time insights into your financial landscape. Stay agile and responsive, steering your organization with precision through financial ebbs and flows. 4. Establish Strategic Partnerships:Forge strong relationships with financial institutions, suppliers, and clients. Collaborate on flexible payment terms and explore financing options tailored to your business needs. Strategic partnerships extend beyond transactions; they become pillars of support during challenging times, ensuring a collaborative approach to financial well-being. 5. Communication and Transparency:Effective communication is the linchpin of successful cash flow management. Foster a culture of transparency within your finance team and across departments. Clearly communicate financial objectives, potential challenges, and the collective role each team member plays in maintaining a healthy cash flow. Transparency cultivates a shared responsibility and a united front against financial uncertainties.As a finance leader, your role extends beyond numbers; it's about steering the financial ship through both calm waters and storms. By mastering the art of cash flow management, you not only safeguard the financial health of your organization but also pave the way for sustained growth and prosperity.FREE WORKSHOP:Unlock the Power of Cash FlowDiscover why shifting your financial focus from P&L to cash flow is crucial for long-term success. Join our webinar "From P&L to Cash Flow: Why Your Financial Focus Needs to Shift,"today at 4 PM BST. Gain actionable insights and strategies to optimize your financial management.Learn more at our preview event: https://lnkd.in/ezf5nccm :

“Cash is king” 💸 As Finance practitioner, the word “Cash is king” always resonate in my mind. I believe that managing your cash flow properly is essential for success especially when running SMEs in early growth stage 🚀. Cash flow is the money coming in and out of your business over time, and it's important to keep track of it so you can identify areas where you need improvement. Without good cash flow management strategies, businesses may struggle even just to fulfil its regular business needs such as payroll, utility, rent or find themselves unable to meet customer demands due to inadequate capital resources. In Seed Transformation Program, we introduce the metric called Net Trade Cycle, also known as the Cash Conversion Cycle (CCC), which is a key metric used in working capital management. Essentially, it measures the efficiency of a company's working capital management by evaluating how quickly they can transform their resources into cash 🎯. Here’s several benefit I see for SMEs to adopt this metrics into their business dashboard: 1️⃣ Avoiding excess inventory: A clear understanding of inventory turnover days helps SMEs minimize excess inventory, reducing unnecessary carrying costs and freeing up cash. 2️⃣ Improved account receivable collection: By doing proper accounts receivable turnover analysis can help SMEs identify inefficiencies in their collection processes. This can potentially lead to faster collections and improved cash flow. 3️⃣ Managing vendor payment terms: By better understanding on the account payable payment cycle and its impact to cash flows allows SMEs to negotiate better payment terms with their suppliers, lengthening the time to pay and improving cash flow. 4️⃣ Ability to forecast cash flow: By analyzing the CCC continuously, SMEs can project their cash requirements more accurately that could help them avoiding cash deficiencies. 5️⃣ Risk management: By continuously monitoring the CCC, SMEs can identify potential cash flow risks early and prepare relevant action to mitigate them. 🤔 As SMEs owner, how do you manage your business cash flow? Please share your feedback in the comment section. 👉 If you're looking to scale your SME or early-stage business and strengthen your financial foundation, let’s connect. Together, we can explore impactful strategies for success. #ScalingUp #BusinessTransformation #Financialmanagement #FractionalCFO

How To Manage Cash Original Content Creator: Oana Labes, MBA, CPA (give her a follow) ---- Learn to Manage Cash. Here's why: To seize growth opportunities To protect against critical business risks To avoid financial distress and loss of business value To maximize shareholder value and return on investment. 🎯 Cash comes into a business from 3 main sources: >> Operations >> Investments >> Financing 🎯 Cash 1.0 is optimizing AR, AP and Inventory terms and turnover 🎯 Cash 2.0 is working on: >> Cash Flow Forecasting Techniques >> Effective Debt Management >> Capital Expenditure (CapEx) Cash Flow Optimization 🎯 Here are 4 critical reasons to remember for managing cash: 1️⃣ Seize Growth Opportunities: ⚫ you need agility to capitalize on acquisitions, expansions, or innovation ⚫ cash reserves may not be sufficient, so having a strategy to attract the incremental cash you need will allow you to take quick action on opportunities and give you a competitive edge. 2️⃣ Protect Against Critical Business Risks: ⚫ cash acts as a financial buffer against economic downturns, demand fluctuations, or supply chain issues ⚫ taking steps to ensure sufficient excess cash will help ensure your operational stability and strategic focus during unforeseen challenges 3️⃣ Avoid Financial Distress and Loss of Business Value: ⚫ effective cash management will prevent cash flow shortfalls, which are a leading cause of business failure. ⚫ the worst time to get other people's money (bank, investors) is when you actually need it ⚫ planning ahead will help you meet short-term liabilities (payroll, suppliers, debts) and avoid eroding business value and reputation. 4️⃣ Maximize Shareholder Value and Return on Investment: ⚫ strategic investments and operational decisions that drive long-term growth and profitability require advanced cash flow planning ⚫ managing cash effectively will always position companies favorable to generate and provide superior returns to shareholders What would you add? __________________ Original Content Creator: Oana Labes, MBA, CPA (give her a follow)

Your revenue is growing. But your bank balance tells a different story. Here's why: Revenue on paper doesn’t mean money in the bank. Delayed payments, unexpected costs, and poor forecasting create a cycle of financial stress. But cash flow management fixes it. Here’s how: 1. Know your inflows and outflows.  → Track every dollar coming in and going out. Surprises kill businesses. 2. Invoice fast.  → Send invoices immediately. The faster you bill, the faster you get paid. 3. Set clear payment terms.  → Net-60 sounds good—until you’re the one waiting. 4. Create a cash buffer.  → One slow month shouldn’t put your business at risk. 5. Forecast cash flow.  → Look ahead. If a shortfall is coming, act before it’s a crisis. 6. Automate follow-ups.  → Payment reminders aren’t nagging—they’re protecting your business. Profit looks good on paper. But cash keeps the lights on. Control your cash flow, and you control your business. Ignore it, and it will control you. #cashflow  #business #growth