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See the cash position clearly
Start with bank balances, available facilities and the payments already committed. Separate collected cash from invoiced sales. A profitable month can still create a cash shortage if customers pay later or stock builds up. Our cash flow statement analysis guide explains operating, investing and financing movements and how they differ from profit.
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Forecast the timing of receipts and payments
Use cash flow forecasting to show expected receipts, payroll, suppliers, tax, debt repayments and investment over a useful planning period. The cash flow forecast template helps organise those inputs. Update the forecast against actual results and investigate differences. Annual profit assumptions alone do not show a difficult payment week.
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Managing cash flow through working capital
Check the time between buying inputs and collecting from customers. The cash conversion cycle combines inventory, receivable and payable days. A working capital review looks beyond one ratio to stock quality, billing, collections and supplier arrangements. Improve the process that causes delay rather than assuming every balance should simply be cut.
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Respond to a shortfall early
A cash flow deficit needs a dated view of the gap and realistic options. Confirm overdue receipts, review discretionary spending and discuss payment arrangements before commitments are missed. Distinguish a temporary timing gap from trading that consistently consumes cash. If the company may be unable to meet its obligations, seek professional advice promptly so decisions are made with its duties in view.
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Connect prices, costs and capacity
Break-even analysis shows the sales needed to cover a defined cost base. It does not replace a cash forecast: loan principal, capital purchases and payment timing are different. Our business performance diagnosis helps identify whether the underlying pressure comes from margin, overhead, volume, capacity or execution.
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Create a small business cash management routine
Assign responsibility for updating the forecast, chasing overdue accounts and approving major commitments. Choose review dates that match the pace of the business. Track the largest uncertainties and agree the point at which action is needed. We help owners translate the numbers into priorities, with attention to the commercial consequences of each choice.
Start here
Explore the topic
- Business performance diagnosis: find the constraintWhen results weaken, more activity can make the business busier without solving the problem. Diagnose the constraint by connecting symptoms to evidence before choosing an improvement agenda.
- Diagnose a cash shortfall before choosing a funding solutionA cash flow deficit is a shortfall between the cash available and the payments due over a period.
- 12-month cash forecast template: plan for seasonal changesA 12-month cash flow forecast shows when money is expected to enter and leave the business.
- Cash flow forecasting: prepare for the next decisionA cash flow forecast shows when money is expected to arrive and leave. Make it useful for a real funding, growth or operating decision by testing the timing and assumptions behind it.
- Cash statement analysis: operating, investing and financingCash flow statement analysis explains where cash came from and how it was used.
- Working capital review: where is cash tied up?A profitable business can still have cash tied up in unpaid invoices, stock or work in progress. Review the operating cycle to understand where money waits and what can be changed responsibly.
- Cash conversion cycleCalculate the cash conversion cycle with DIO, DSO and DPO, a worked example and a calculator. Discuss your working-capital priorities with us.
- Break even analysisUse break even analysis with formulas, a worked example, calculator and spreadsheet steps. Discuss your pricing and performance assumptions with us.
Your next move
Discuss your cash priorities
Bring your recent cash position, upcoming commitments and the main assumptions in your forecast. We can help identify the pressure points and the decisions to tackle first.
Discuss your cash priorities