Cash Is King – How Fractional Finance Directors Improve Cash Flow

When a Fractional Finance Director (FFD) joins a new business, one of the first things they’ll look at is how to improve your cash flow. They do this by diving into your current processes, and then setting up, or improving, your cash flow management system.  

This task is pivotal: cash, and therefore cash flow, is the lifeblood of almost every single business. 

Making sure there is enough cash to cover all outgoing expenses, when those expenses are due, can be the difference between a flourishing, growing business, and one which struggles on a week-to-week basis and ultimately is more likely to fail.  

Anna, one of our talented and experienced FFDs is an expert at creating the right cash flow system for a business. In fact, it’s a priority for her when she joins a business. She explains more here.

Establishing a strong fit-for-purpose cash flow system is something that many business owners don’t necessarily have the time, or skills to do. But navigating the choppy waters of business, seizing opportunities and thriving all require good cash flow.  

For business owners, improved cash flow means greater financial stability, easier decision-making, and the likelihood of long-term sustainability and growth 

Can Cash Rich Business Improve Their Cash Flow?

The answer is yes. Even cash-rich businesses benefit by optimising and improving cash flow. This makes the money you do have work harder for your business.

Knowing exactly what money you have means you can invest, expand or even acquire premises or other businesses if the opportunity arises. When you improve your cash flow management, you are able to generate higher returns on your money and, crucially, boost your profits without having to increase sales.  

We aren’t just talking about having extra money on hand for when you need it (although that is a huge benefit) – we are talking about being able to leverage the money you have to continue to grow your business.   

Of course, as a business owner, you could improve your own cash flow by monitoring your cash flow projections, negotiate and ensure better payment terms with your suppliers, look into cash flow forecasting and identify any potential gaps in your cash flow yourself.  

However, if this seems daunting, or you just don’t have the time, consider bringing in an expert Fractional Finance Director like Anna to bring peace and calm to the financial side of your business and never miss a payment again.  

Get in touch today to see how we can find you the perfect FFD to improve your financial management and drive your business towards greater prosperity.