Cash is the lifeline of any business and is necessary to carry out the smooth and uninterrupted business operations.
Many a times the businesses face tough challenges, such as hurdles in growth, changes in business dynamics or difficult business conditions. Cash flow management is an important part of working capital management and if working capital components such as accounts receivables, accounts payables, inventory is managed correctly, the cash flow cycle would be better to manage.

Good cash flow management requires the following:

• Detailed cash flow forecasting
• Review of banks facilities
• Assessment of investing and financing function of the organization.
• Sensitivity analysis to ensure improvement in cash flows.
• Building cash flow forecast
• Review all trade payable terms and recommend amendments
• Evaluate overdue receivables and accelerate collections
• Evaluate discount receivable terms to improve cash flows
• Analyse inventory ageing and slow moving inventories and recommend solutions for their fast disposals