JMH Consulting

Within any organisation the effective control of cash and the preparation of a cash flow forecast is vital. It can be said that cash is the fuel that enables business to develop into the future. Some may refer to this activity as Cash Management, Cash Flow Management or Treasury Management, whatever the name used, getting it right is what is important.
 
 
Cash is King
 
Excellent margins and a strong order book are components of growth strategies but without cash or adequate funding they can be rendered useless. The phrase that CASH is KING is very appropriate and just serves to emphasise why an effective cash flow forecast, supported with a cash flow management and procedures system should be in place. If your organisation is about to enter into an MBO, then the subject of cash flow is very much for you.
 
  
Cash Flow Forecast
 
The key to successful cash flow management is effective cash flow budgeting, cash flow forecast preparation and cash flow monitoring. Often this critical area business activity is not afforded the time or importance that it desires and deserves, especially in new start and emerging businesses. It is important that business does not under estimate the cash to business relationship as this plays such a critical part in the success of any venture.
 

Cash Flow Spreadsheet, Systems and Procedures
 
Engaging an external resource to help in the setting up of systems, including the use of a bespoke cash flow spreadsheet and procedures to plan, monitor and forecast future requirements can be the most cost effective way to get started or review any existing processes. Cash flow planning and cash flow forecasting when carried out effectively remove tomorrows surprise and allow a business to get on with achieving it’s strategic targets as detailed it the business plan.
 
 
Electronic Cash
 
A new emerging form of cash in some business sectors is electronic cash. This can also be referred to as the electronic purse or wallet. Other terminology used particularly when making any accounting entries are Giro Vend, Cash to Client and Cash from Client. This so called "cashless" facility should prove to be a gift to the working capital structure of an organisation, but in reality it can deliver issues that could effect both the profit and loss, and balance sheet accounts. It is therefore vital that advice is sought to ensure that these pitfalls are overcome.