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Financial Management

"Get More Value From Optimizing Your Company Internal Financial Management"

Recent Case Study: Changing how SME manages its financial

Background:

An SME in the renovation industry, was facing challenges in managing its financial operations efficiently. Despite consistent revenue growth, the company experienced cash flow shortages, high borrowing costs, and difficulty in meeting financial obligations.

Challenges:

  1. Cash Flow Shortages: Despite growing sales, the company struggled with inconsistent cash flow, leading to difficulties in meeting payroll, supplier payments, and other financial obligations.
  2. High Borrowing Costs: The company relied heavily on external financing to cover cash flow gaps, resulting in high borrowing costs and increased financial risk.
  3. Inefficient Working Capital Management: Inefficient management of accounts receivable, inventory, and accounts payable led to tied-up capital and reduced liquidity.
  4. Lack of Financial Insight: The company lacked visibility into its financial performance and lacked actionable insights to make informed decisions.

Solution:

We were engaged to assess their financial operations and develop a comprehensive strategy to address the challenges.

  1. Cash Flow Optimization:
  • Conducted a thorough analysis of cash flow patterns and identified areas of improvement.
  • Implemented measures to accelerate cash collection, including streamlining invoicing processes and implementing stricter credit policies.
  • Negotiated favorable payment terms with suppliers to optimize cash outflows.
  1. Working Capital Management:
  • Analyzed accounts receivable, inventory turnover, and accounts payable processes to identify inefficiencies.
  • Implemented inventory management systems to optimize inventory levels and reduce carrying costs.
  • Introduced automation and process improvements to expedite invoice processing and reduce payment delays.
  1. Financial Planning and Analysis:
  • Developed financial models and forecasts to provide visibility into future cash flows and financial performance.
  • Conducted scenario analysis to assess the impact of various business decisions on financial outcomes.
  • Provided ongoing financial analysis and reporting to monitor performance against targets and identify areas for improvement.

Results:

  1. Improved Cash Flow: By optimizing cash flow management practices, the company significantly reduced cash flow shortages and improved liquidity.
  2. Reduced Borrowing Costs: With a stronger cash position and improved working capital management, the company was able to reduce its reliance on external financing, leading to lower borrowing costs and improved financial stability.
  3. Enhanced Financial Insight: The implementation of robust financial planning and analysis processes provided the company with greater visibility into its financial performance and enabled more informed decision-making.
  4. Sustainable Growth: With a solid financial foundation in place, the company was able to focus on growth initiatives with confidence, pursuing new market opportunities and expanding its product offerings.

Our Scope

  1. Perform In depth diagnosis and gap analysis
  2. Development of strategy roadmap, framework, processes and action plans
  3. Plans for implementation and monitoring
  4. Additional plans to optimize financing, investment and risk management
  5. Identification of business risk exposure, development of proper risk management processes and controls
  6. Formation of corporate structure to maximize company financials

Talk to us today to learn how you can optimize your company internal financial management!

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“Thank you so much for your hard work and leadership in helping us to navigate through it all. Sincerely appreciated.”

Walter Tarca
President, Forefront Medical

“We worked with Advanced Consultancy for our Business Excellence (BE) framework and it has been fruitful. The professionalism, the assistance and guidance has been most helpful and we couldn’t have asked for a better consultant. They had most definitely helped us in the journey."

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Business Development Manager,
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