Cash is King

Why do we talk about cash being king? Most organisations will experience cash flow issues at some point. Indeed, it is said that 80% of the organisations that file for insolvency are “profitable” in the accounting sense of the term – they just run out of cash to pay their bills as they fall due.

Full day

Overview

In recent years we have seen many companies fail due to interrupted cash flow, with the hospitality, manufacturing and construction industries sadly being most impacted. Supply chain issues, an increase in production costs, more red tape post-Brexit and post-pandemic – these are just some of the factors that have adversely impacted cash flow, the lifeblood of your business.

This workshop shows you how to track the cash flowing in and out of your business. We will also look at the tools you can use to ensure that your business has enough cash, not just to survive, but to thrive; to grow and expand and to overcome the challenges listed above. We’ll explore the metrics that lenders and investors will want to see to gain reassurance around cash management in the business.

Full of practical tips and a change in focus from the P&L to Balance Sheet management – you will leave armed with not just new knowledge, but a toolkit to help you proactively monitor and prioritise your own organisation’s cash needs.

This is where the rubber hits the road!

What you'll learn

• The 5 key reasons why organisations run into cash flow problems and how to monitor
them
• The key ratios used to calculate an organisation’s liquidity
• The need to focus on the Balance Sheet rather than P&L to monitor cash flow
• How the working capital cycle operates and the KPIs used to monitor its efficiency
• The meaning of free cash flow and how it is calculated
• The format of the Cash Flow Statement and how to interpret it
• A tried and tested formula for improving cash flow in 100 days

Who is it for?

Thiis is a great opportunity to take a step back and work on your organisation, rather than
working in it, to gain that helicopter perspective around any cash flow and efficiency issues.
By giving yourself the luxury of time, you can gain clarity and strategic insight around any
operational problems.

This is for you, if you are noticing:

• More pressure from suppliers for their bills to be paid
• Debtors taking longer to pay you
• The bank becoming stricter about reports and KPIs
• Cash becoming an issue and you can’t pinpoint the exact reason why
• You want to scale but are aware that you will need to do so carefully and want KPIs that will ensure you do so safely
• Profitability is falling
• You’ve lost a key customer and need to plug the income gap
• Investors and lenders are growing impatient with you
• Senior leadership is pulling in different directions about the correct course of action
• You are losing sleep about all or any of the above!

Your facilitator

Sarah Hobbs

Sarah is the co-founder of Vondel Professional Development, and is an engaging and highly qualified business and training consultant who specialises in making finance easily comprehensible for non-financial professionals. She has worked with a variety of clients across both the private and public sector including HMRC, Ince & Co, Wolseley, United Biscuits, PwC, Knight Frank, Mothercare, Nabarro, Norton Rose, BMJ Publishing and Barclays Bank.