Michael Sullivan’s Post

CFOs with 60 to 75 day DSOs are flirting with cash-flow disasters. Get a proven plan to cut your DSO by 40% in 90 days. 👇 Michael Sullivan and I have led successful cash optimization transformations for 18 businesses and counting. Most CFOs start here: ❌Expanding collections teams ❌Creating incentives for salespeople ❌Implementing a new ERP And that 60 or 75 day DSO barely improves, if at all. Wasted time and resources; risk not averted. Especially in an inflationary economy. It’s time to address the underlying cause before that inevitable disaster that will endanger your business and the job security of countless employees. But, what are your options? ✅ Good news! We’ve validated 3 proven plans of attack, 18 times over. Consistently, conquering a variety of variables. And we’re going to walk you through all 3 of them, step by step, deconstructing best practices so you can achieve the same 40% reduction in DSO. Which strategy will work best based on your resources and limitations? ✅ Good news! We’ll explore what to do, when and how through the lens of 2 CFOs or organizations on opposite ends of the spectrum. All you have to do is show up, take notes and ask questions. We’ll share personalized tips during Q&A. 1 hour is all that stands between you and a proven roadmap to cutting DSO by 40% in as little as 90 days. See you soon! 👉 Register now and block your calendar. https://lnkd.in/gW8gV84q

Efficient short-term cash forecasting saves time and enables better decision-making during disruptions. Analyzing forecast accuracy helps refine the process. In moments of disruption, quick forecasting is crucial for staying profitable. https://lnkd.in/ev5Qw_eA

Your cash flow forecast is not a valuable working tool unless you delve deep into your data to create the forecast and then regularly update it as things change with your business. What does it take to create a strong cash flow forecast? #StrongCashFlow https://lnkd.in/g-kCE4Ja

💡 Shining a spotlight on financial forecasts: Are you Team DSO/DPO or Team Percentage of Revenue/Costs? Digging beneath the surface of financial forecasts, the fine print is the game-changer. Look at this: Centralize your assumptions. Bundle your essential operating assumptions. Why? For a crystal-clear view and smooth sailing management. DSO & DPO: They are your torchbearers when it comes to real collection/payment conditions. But beware! Averages can be a wolf in sheep's clothing. Percentage of Revenue or Costs: Simple and straight, but is it oversimplification? In a stable business scenario, it comes out as the dark horse. 📍Key Takeaways: One, having all your assumptions on a single page is like having a compass during your financial forecasting journey. Two, reflect your business's realities in your forecasting methods. Preparing for a financial forecast ride? What's your compass: DSO/DPO or Percentage of Revenue/Cost? Dish out your thoughts!

▶️5 Top cash flow forecasting challenges and solutions   Welcome, CFOs!   In today's uncertain and high-interest-rate era, honing your cash flow forecasting skills is crucial for staying ahead.   I'll delve into the top 5 challenges in cash flow forecasting and provide practical solutions to help you. Let's get started!   5 Top cash flow forecasting challenges and solutions   Welcome, CFOs!   In today's uncertain and high-interest-rate era, honing your cash flow forecasting skills is crucial for staying ahead.   I'll delve into the top 5 challenges in cash flow forecasting and provide practical solutions to help you. Let's get started!   ▶️Inaccurate Data Input Challenge: Relying on outdated or erroneous data. Solution: Implement robust data validation and integrate real-time financial systems to ensure accurate and reliable inputs.   ▶️Volatility in Market Conditions Challenge: Market shifts that render forecasts irrelevant. Solution: Utilize predictive analytics and establish a system for regular updates to adapt quickly to dynamic market conditions.   ▶️Lack of Expertise and Tools Challenge: Limited skills and tools hinder detailed forecasting. Solution: Invest in comprehensive staff training programs and leverage AI-enabled software to enhance forecasting accuracy and efficiency.   ▶️Complexity of Global Operations Challenge: Managing cash flows across different currencies and regulations. Solution: Harness the power of specialized software solutions designed to handle international complexities seamlessly.   ▶️Short-Term Focus Challenge: Neglecting long-term planning can lead to strategic misalignment. Solution: Strike a balance between short-term forecasts and long-term strategic goals to ensure sustainable growth and optimal decision-making.   By addressing these five challenges head-on, you'll empower your organization with accurate insights, robust risk management, and long-term success amidst economic uncertainty and high interest rates.   Remember, mastering cash flow forecasting isn't just about crunching numbers. It's about driving strategic growth and making informed decisions. Let's embark on this journey together!   What other challenges would you like to add? 🚀🎯   🔔 Ring the bell at the top right of my profile so you don't miss out on new posts.   🧑🎓 Learn how we can help your finance team at www.ecmcg.com   🤝 Contact me at echavez@ecmcg.com if you want to pick my brain #financetransformation #finance #cfo #workingcapital

Reflecting on the past 7 months, it's amazing how time has flown by! As we gear up for the rest of the year, it's essential to plan ahead for the success of your clients. Let's explore the valuable services you can offer to benefit your clients: ⭐️ Forecasts: Providing accurate financial projections to make informed decisions. ⭐️ Budgets: Offering effective strategies to optimize resources. ⭐️ Elevated KPI Reporting: Delivering comprehensive insights on key performance indicators. ⭐️ Loans: Assisting in securing funding for business growth. ⭐️ A Clear Picture into the Future: Providing insights for better long-term planning. Taking some time away from work is always refreshing, but imagine coming back without any worries, knowing you're on the right path for success! #cashflow #cashflowforecasting #reporting #managementreporting #forecasting #smallbusiness #business https://www.futrli.com/

In an economy which presents both challenges and opportunities, the ability to forecast the direction of your business enhances your positioning in terms of identifying, in advance, where those challenges and opportunity might be and then to take advantage of that foresight. Forecasting feels like it should form an essential part of business management, for both operational and financial information, in order for that business to thrive. Some focussed opportunities included in Chris Jovic post below - jump in! #cashflow #cashflowforecasting #smallbusiness #managementaccounting

Register for our next webinar before it’s too late! We hope to see you on January 18th for “Cash Management and Forecasting: Automation for 2024,” where you’ll learn new tips on optimizing your cash visibility and forecasting with automation. ➡️ https://bit.ly/47tfouI

How I build the Balance Sheet in only 10 steps 👇 ~~~ 𝗧𝗟;𝗗𝗥: download the guide here 👉 https://lnkd.in/ew4nwaVx ~~~ 1. Cash = direct link to "ending cash" on your Statement of Cash Flows 2. Retained Earnings = the prior period + Net Income 3. Contributed Capital = most likely just carry it forward flat ~~~ Working Capital or "NWC" (will be it's own schedule) - 4. Accounts Receivable: built using DSO, pull from NWC Schedule - 5. Inventory: built using DOH, pull from NWC Schedule - 6. Prepaid Expenses: built using % of Sales, pull from NWC Schedule - 7. Accounts Payable: built using DPO, pull from NWC Schedule - 8. Accrued Expenses: built using % of Sales, pull from NWC Schedule (↑ Note: the reason I love the NWC Schedule is b/c it gets you 5 line items of your Balance Sheet) ~~~ 9. Fixed Assets = the prior period + Capex - Depreciation (↑ Note: Capex & Depreciation are also built on a separate schedule) ~~~ 10. Debt = link to the ending balance on your Debt Schedule ~~~ Now, to get to these 10 "link-up" steps, you need 5 Schedules. They are: 1. The Income Statement 2. The Statement of Cash Flows 3. The Working Capital Schedule 4. The Capex & Depreciation Schedule 5. The Debt Schedule ~~~ My preference is to build these schedules on the same tab (aka "vertical modeling") so that you're linking all within one space. Others prefer separate tabs (aka "horizontal modeling") — you do you. It's all good. This is one of those things that's hard to learn, but once you know it, it speeds up your modeling tremendously. ~~~ 👋 Hey, I'm Chris Reilly, thanks for reading. ➕ Follow me to learn Financial Modeling for the middle-market.

Are you struggling to manage your cash flow? The Rolling 13 Weeks Cash Flow is here to help! This Excel template provides an easy way to forecast your cash flow for the upcoming quarter, allowing you to make smarter financial decisions. - 13-week rolling cash flow forecast template in Excel - Easy to customize for your business needs - Helps with financial decision making and reducing cash flow stress - Available for download at Big4WallStreet.com #CashFlowManagement #FinancialForecasting #BusinessExcelTemplates