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7 cash flow warning signs every CFO should recognise

Overview

26,000 businesses in the UK were dissolved in June 2013 alone - cash flow was the most common reason given. Despite such worrying statistics, many CFOs still find it a challenge to get buy-in from other departments who may not see cash flow as a priority. Quite often, other departments simply don't think cash management is their responsibility...


To assist CFOs in their quest to improve the cash management of their company, we have identified 7 cash flow warning signs that all businesses need to be aware of:


1. Lack of a cash flow management plan.
2. No credit and debit limits.
3. No visibility of due dates for credits and debits.
4. Lack of internal controls and processes.
5. Using short-term fund for long-term purchases.
6. A lack of security.
7. Stale and out-of-date reporting methods.


Download the full document for more detail on each of the 7 cash flow warning signs - along with recommendations on how to tackle each one and install the processes that will ensure cash flow is being managed efficiently throughout your company.

Tags: Cash Flow Management, CFO, Working capital.

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