Cash Flow Considerations

Maintain control of your business through advanced cash flow modeling

In the current climate, all businesses are closely monitoring and guarding their cash flow. Much of the initial focus has come in the form of restricting controllable outputs; however, there are further opportunities beyond this first step. For instance, what information are you basing cash projections on? Are all inputs equally weighted?  And how much variance from historical averages can you expect?

Risks have changed dramatically in a short period of time. By closely tracking how each of these affect your business from a cash perspective, you can best maintain control of your business.

At Pontem we’re recommending three simple approaches to help navigate the challenges you are facing today; these dashboards monitor:

• Actual and forecasted operating cashflows, with drilldowns into the details of each input
• Risk profiles for accounts receivable & sales backlog, tied to industry
• Actual and forecasted liquidity ratios

Using data analytics, these dashboards can be updated in real time to ensure you are making timely, data driven decisions.  By quickly identifying trends, you can make necessary business adjustments, and shift from being reactive to proactive.  There is no precedent to the dynamic challenges we are all facing today; however, closely tracking actual results and forecasting various scenarios is a powerful tool for making good decisions in an uncertain environment.

Have the information you need to make informed decisions, begin your journey to becoming a data-driven organization today by getting in touch with our team.