Discover the Cash Flow Formula: the systematic approach to analysing the cash flows within your business.

... and the ‘aide memoire’ to improving the way your Business manages Cash.     The Cash Flow Formula was developed after extensive research into understanding where businesses hide Cash.         Start finding Cash Work your way around the Cash Flow Formula and, you will, unearth cash buried in your Business. The Formula can be entered into at any of the 7 segments* especially if you recognise areas of concern or a segment does not apply to your company.   The 7 Segments Competitors: Identify the common financial yardsticks used to compare peers in the sector. Focus the business on improving the key financial yardsticks. Communicating the improvements will crystallise future investments.   Cash Flow by Company: Focus on the business’s rising star: the company or area that is expected to demonstrate the highest returns in the medium term. Where there is high growthpotential the greatest opportunity for poor financial controls exists.   Business Model: Develop an understanding of the individual Company’s business model and analyses the business’s performance. Challenge the business to investigate if the business model is still current and the strategy derived from that is still correct.   Internal Accounts: Take a close look at the Internal Accounts. The Internal Accounts are graphedover a 4-month period and compared to the previous years results over the same period. This trend analysis is used to highlight areas where cash flow improvements are required.    Product contribution: Determining which products have the greatest contribution to the company can be used to focus future product developments and withdrawals. The highest contributing products will have the greatest impact on the management of Cash flows.   Cash Flow by Product or Service: Detailed deconstruction and mapping of the Cash Flow for each of the products is used to determine which products or services provide the best use of cash within the business, it also ensures that suppliers credit terms are controlled and managed effectively.   Credit Control: Analyse when customers pay their bills so that irregularities can be identified before large debts are amassed. Understanding the key dates in the Cash Flows for a product or service allows better use of the credit given by vendors and the debt owed by customers.     *If you represent a Small to Medium sized company start with Credit Control and work your way round the wheel of fortune in an anti-clockwise direction.