REPORT ON PROGRESS
Advanced Cash Flow Management
At $3m+ in revenue, cash flow management needs to be sophisticated, forward-looking, and integrated with your broader financial strategy.
Advanced Cash Flow Management for Large NZ Businesses
Cash flow management at this level is a strategic function, not just an administrative one.
What this involves
A rolling, multi-period cash flow model that is updated monthly and reviewed alongside your management accounts. This model should:
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Project out at least 12 months, with monthly granularity
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Factor in all significant cash movements — tax payments, loan repayments, capital expenditure, seasonal patterns
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Be built on assumptions that are reviewed and updated regularly
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Feed into decisions about working capital, debt facilities, and investment timing
Working capital management
At this size, the management of debtors, creditors, and inventory (where applicable) has a material impact on your cash position. Tightening debtor days by even a small amount can free up significant cash. The same applies to creditor terms — understanding what you can negotiate and when.
This is the kind of work that a strong CFO or senior accountant can add real value on. If you don’t have that capability in-house, it’s worth considering whether you should.