Understanding historic cashflows and finance metrics to create cashflow forecasts, for both budget and strategic purposes and day to day running of the business.
Direct cashflow - uses actual cash inflows and outflows
Indirect cashflow - starts with net income, adjusting for non-cash items, and balance sheet movement
Set good practices around cash collections
Build strong relationships with vendors
Create a 13 week/ 3 month rolling cashflow forecast (direct method)
Monitor cashflow forecasts regularly and update based on new information