When a company faces financial uncertainty, including negative cash flow and the risk of insufficient liquidity, effective liquidity and cash flow management become critical to its survival and recovery. Beechwood’s Liquidity and Cash Forecasting Services are customized to provide a clear and actionable view of the company’s cash position, including the preparation of a 13-Week Cash Flow Forecast (“TWCF”)—an essential cash management tool often required by capital sources.
Preparation of the 13-Week Cash Flow Forecast
- Analyze current Accounts Receivable and Accounts Payable agings.
- Identify major customers and vendors.
- Review and analyze borrowing base computations.
- Analyze historical cash receipts and disbursements.
- Assess current or planned capital expenditure projects.
- Evaluate borrowing base requirements.
- Understand the current cash management process and internal controls.
- Identify improvements to the cash management process and internal controls.
- Develop the cash flow forecasting model and assumptions.
- Formulate working capital strategies to “Stop the Bleeding.”
Cash Management and Reporting
- Manage or assist with the cash management process, including maintaining the TWCF.
- Develop an actual vs. forecast process.
- Establish cash management key performance indicators.
- Compare actual results to forecasts and adjust to improve future forecasts.
- Communicate with capital sources and critical vendors.