Rolling cash-flow forecasting and optimisation of your working-capital cycle.
Profit is an opinion; cash is a fact. Profitability on paper means nothing if you cannot make payroll on Friday. A critical failure point for growing businesses is the misalignment between when cash leaves the company (Accounts Payable) and when it enters (Accounts Receivable). As your Virtual CFO, we transition your finance function from looking backward at historical profits to looking forward at dynamic cash liquidity. We build and monitor 13-week rolling cash flow forecasts that act as an early warning system, predicting exact cash shortages months before they threaten your operations.
In the current regulatory environment, working capital management has become increasingly complex due to strict new tax mandates. We help you navigate the delicate balance of complying with the stringent 45-day MSME payment rules—ensuring you don't lose massive tax deductions—while still negotiating favorable credit terms with your larger suppliers. From setting up supply chain financing and optimizing inventory turnover to enforcing rigorous credit control policies, we structurally reduce your Cash Conversion Cycle (CCC) so your business can fund its own growth without relying heavily on expensive external debt.
Profit vs. Cash FlowA rapidly growing company often 'grows broke.' As sales increase, more cash gets tied up in inventory and receivables. You can report record profits while simultaneously running out of cash to pay your immediate bills.
The Cash Conversion Cycle (CCC)This metric measures how many days it takes to convert your investments in inventory and other resources into cash flows from sales. Lowering your CCC is the most effective way to organically fund your business.
The 45-Day Tax TrapIf you purchase goods or services from a registered Micro or Small Enterprise, you must pay them within 45 days (or 15 days if there is no written agreement). Failing to do so means the expense is entirely disallowed for tax deductions in that financial year, drastically inflating your tax liability.
Because cash gets tied up in receivables, inventory, and timing mismatches. We forecast and manage that cycle so cash is available when you need it.
A 13-week forecast predicts your exact cash inflows and outflows on a weekly basis for the next quarter. Thirteen weeks is the gold standard because it represents one full business quarter—long enough to foresee a liquidity crunch and take strategic action, but short enough to be highly accurate.
It forces you to pay certain suppliers faster than you might be collecting from your own customers. If your customers pay you in 60 days, but the law requires you to pay your MSME suppliers in 45 days, you have a 15-day 'cash gap' that must be funded either by internal reserves or a working capital loan.
We implement structured credit control policies: running credit checks before onboarding large clients, enforcing strict payment terms, offering early-payment discounts, and moving from manual follow-ups to automated, escalating payment reminders.
Yes. A key part of our service is preparing the detailed Project Reports (CMA data), cash flow projections, and collateral assessments required by banks to sanction or enhance Cash Credit (CC) or Overdraft (OD) limits.
Yes. We help tighten credit terms, collections, and the overall receivables cycle.
Typically monthly or more frequently for tighter situations, as agreed.
Tell us a little about your requirement and our team will get back to you with the right guidance and a clear next step.
