Cash Flow Improvement

Cash is considered to be the backbone of any business. It is the most important liquid asset and no business big or small can ever stand without cash .Cash is considered to be the most eminent factor for the growth of any company, hence cash management and its improvement becomes a very vital aspect for any company. Cash Flow management as it is called in the language of business makes sure that all the operations and transactions of your business go on smoothly and thereby eliminate the chances of funds shortage.

What is Cash Flow?

Cash Flow is the amount of cash and cash-equivalents coming in and going out of a company. It includes:


  • Cash collected through sales
  • Cash received from profits made on investments


  • Payments to suppliers and employees
  • Payment for interest and taxes
  • Inventory and prepaid expenses

As we see that cash flow is an integral part of any business and one cannot survive without it and therefore the need for cash management becomes very important.

Cash Flow Improvement:

Cash Flow Management as the term suggests is managing, keeping track and analysing the cash flow of a business. It helps in valuation of your company and prepares you better for the future plans and investments, apart from this it gives an insight of cash flow forecast and assists in cash flow analysis. Further cash flow management can be classified as following:

  • Cost Management
  • Capital Management
  • Profit Maximization blueprint

At Starters’ CFO we provide a complete cash flow management along with the plans to improve it over a period of time, our cash flow managers make sure all your transactions are completely hassle free be it,

  • Tax management
  • Accounts Payables
  • Inventory Management
  • Developing blueprints
  • Financing & Loan Management

What is the need for Cost Management and Capital Management?

For growth and smooth functioning of any business it is very important to have a cost management system which keeps a track of all your expenses and make sure that all the plans are cost effective. Cutting cost is important to an extent but doing so blindly can have adverse affect on the quality of work.

Same way the aim of any company is long term sustainability and positive growth, hence managing a proper capital (working capital improvement) is a must as it helps to get rid of debts and also have sufficient funds for future operations.

Therefore, taking help of an expert like Starters’ CFO is always advisable for the betterment and functioning of your business;

At Starters’ CFO we assist with:

Understanding the real goal of businessManaging the team goals and tasks
Developing budget costs, reports, preparation of charts etc.Reviewing payable cycles
Evaluation of cost savings, excessive costs, efficiency etcFixing standard minimum capital after detailed study
Finding the scope for improvement in cash flow cycles.Focusing on areas to improve cash flows.
Study and improvement of cost structureMaking better payment and collection terms


Profit Maximization:

Making maximum profit is the end goal of any company as it is the main motto of a business. In order to achieve that one needs to have a detailed blueprint of the cash flow and make constant efforts to improve it.

At Starters’ CFO we help you develop a strategy to maximize the profit by working on the following terms:

  • Financial analysis
  • Maximizing revenue collection
  • Improving investment plans
  • Systematic cost control
  • Minimizing operational costs

FAQs :

1. What is cash flow?

Cash flow are the funds that are used to manage day to day operations of a company. These are the funds that are flowing in and out of your company in a month.

2. What increases cash flow?

Companies can increase cash flow from operations by improving the efficiency at which they manage their current assets and liabilities.

3. Why cash flow is important?

Cash is important because it later becomes payment for things that make your business run: expenses like stock or raw materials, employees, rent and other operating expenses. Naturally, positive cash flow is preferred.

4. What does cash flow tell you?

The cash flow statement identifies the cash that is flowing in and out of the company.

5. How does cash flow work?

Because the cash flow statement only counts liquid assets, it makes adjustments to operating income in order to arrive at the operating income that flows in as cash and cash equivalents.

6. What is cash flow analysis?

The cash flow analysis is an examination of a company’s cash inflows and outflows during a specific period and is used for financial reporting purposes.

7. Is cash flow a profit?

A company can have positive cash flow while having no profit if the cash comes from sources other than income.