Cash Flow Management & Forecasting

You can have a R1 million profit on your Income Statement and R0 in the bank. How? Because profit includes non-cash items (depreciation) and doesn't account for loan repayments, VAT payments, or capital expenditure.

We bridge this gap by showing you exactly where your cash went, every month.

In South Africa, the average SME waits 45-90 days to get paid by their clients. Meanwhile, they must pay salaries, rent, and SARS on time.

We analyze your Debtor Days, identify slow payers, and implement strategies to speed up collections — from credit terms review to automated reminders.

If your business has seasonal peaks and troughs (construction, tourism, retail), you need a cash flow strategy that carries you through the quiet months.

We build a 12-month seasonal forecast that shows exactly how much cash you need to save during peak months to survive the quiet ones.

A cash forecast is only useful if it changes decisions before the bank balance becomes a problem. We turn the forecast into a weekly operating tool by showing expected collections, supplier payments, payroll, SARS payments, loan repayments, and committed overheads in the same view. That makes shortfalls visible while there is still time to act.

The practical work is often in the detail. We check whether debtor promises are realistic, whether supplier terms can be stretched without damaging relationships, whether VAT and PAYE payments have been allowed for, and whether upcoming stock or equipment purchases will create pressure. The forecast is then updated with actual bank movement so management can see what changed and why.

For South African SMEs, this discipline is especially valuable around SARS deadlines, seasonal revenue, delayed customer payments, and funding applications. A lender or investor can see that cash is managed from real data, not only from an annual budget.

Cash flow forecasting improves when it is tied to working capital, not only expected bank movement. We review debtor days, creditor days, stock timing, VAT cycles, payroll dates, loan commitments, and customer concentration so the forecast explains why cash is moving. That makes it easier to decide whether the answer is faster collections, slower supplier payment, revised pricing, a stock purchase delay, or short-term funding.

We also separate once-off pressure from recurring pressure. A single equipment purchase may need planning, but a pattern of late collections or shrinking margins needs operational action. The forecast helps management see that difference before decisions become emotional.

For businesses applying for finance, this working capital view is useful evidence. It shows lenders how cash is generated, where it gets trapped, and what management is doing to protect repayment ability before facilities are requested. It also gives owners a calmer way to decide when to hold cash, when to pay early, and when to delay spending.