Today’s post is aimed at giving you some really practical advice based on Susan’s in-depth experience of managing the all important cashflow. For many, too many, organisations the focus for the next few months will be on survival and that means
CASH IS QUEEN!
Your cashflow forecast is your most important financial tool and you need to invest in building and updating the best model that you can.
Essential steps
- Establish a 13-week rolling cashflow forecast so you always have a detailed picture of your cash needs at least three months ahead.
- Review your creditors: who do you owe money to now, who will you owe money to in the near future? How will you manage them?
- Take stock of your current and future debtors. Who might have problems paying you? How are you going to approach chasing for outstanding sums?
- Make sure that you have sufficient resource within your finance team and that they are supported – you are going to be asking a great deal of them over the next year.
- Ensure that your controls over cash are strong. Whilst your building is shut this is less about physical cash and more about getting a very firm grip on your future commitments.
- Get ready to access whatever help the Government and other funders may make available. Don’t just rely on the arts press, subscribe to key Government updates and use the expertise of your Board members and advisers such as auditors.
Getting a firm grip on your cash now is vital. I hope that these tips and the accompanying guidance will help you. Do get in touch: what is working for you and what do you want to know more about?
Download more detailed guidance here (if you need the guidance in another format please let me know).
Susan & Dawn