Sales are growing but cash is tight
Compare collection timing with stock, staffing and supplier commitments. Growth can need cash before customers pay, even where the income statement shows a profit.
ACCOUNTING & BOOKKEEPING · SOUTH AFRICA
Cash flow management for the weeks and months ahead.
Profit is useful, but your business also needs money available when commitments fall due. Vatco helps review cash movements, organise expected receipts and payments, and build a clearer view of the timing decisions that affect your day-to-day operations.
Your requirements · A clear scope · Your next step
YOUR SERVICE GUIDE
Cash flow management
Cash flow management
01
UnderstandSee where cash is moving.
02
ForecastMap receipts and commitments.
03
RespondPlan practical actions early.
Start with the details that matter.
A clear place to start.Tell us what your business needs.
THE TIMING MATTERS
A profitable business can still face a cash gap.
Your income statement and bank balance answer different questions. You might have made a profitable sale but still be waiting for the customer to pay. Stock could have been purchased before it is sold, or equipment and loan repayments may have used cash without appearing as ordinary expenses in the same way. Cash flow management makes these timing differences visible.
The first question is not simply whether money is coming in. It is whether enough is likely to arrive before the payments you have committed to make. Looking at the sequence helps you spot periods where cash may be stretched and consider practical choices before the account balance becomes the only warning.
- Discuss whether you need a review of past cash movements, a forward view or help testing the assumptions behind the figures.
- Match the scope to the pressure you face, the quality of the records and how often decisions need to be revisited.
- Use the forecast to plan actions, while recognising that expected receipts remain uncertain. A forecast cannot make a customer pay.
YOUR SITUATION
Start with the cash decision in front of you.
A large customer pays late
Bring the aged debtor list, disputed items and expected receipts. Test a delayed-payment case rather than treating every invoice due as cash certain to arrive.
You have a near-term shortfall
Identify available funds and dated commitments first. Cash-flow work can organise choices, while financing or specialist advice may need a separate engagement.
COSTS BEFORE YOU COMMIT
What the quote needs to cover.
Swipe across to compare all columns.
| Cost item | Amount or pricing basis | Inclusions and separate work |
|---|---|---|
| Cash-position review | Quoted for accounts, periods and the decisions needed | Review recorded movements and identify the main timing pressures. |
| Forward cash forecast | Quoted by forecast horizon and detail | Agree the periods, assumptions and scenarios to be modelled. |
| Recurring updates | Quoted by review frequency | Specify who supplies changes and whether management discussions are included. |
| Bookkeeping, funding or debt advice | Separate scope where required | A forecast does not include raising finance or resolving a legal debt issue. |
Vatco confirms the professional fee, included work and any separate costs in writing after reviewing the records and scope. No unapproved price or package is implied.
BUILD THE STARTING POSITION
Documents and records to prepare.
Start with the records relevant to your situation. We confirm the exact scope and any authority-specific attachments before submission; briefing information is not automatically a mandatory filing document.
- Available fundsBank balances and facility confirmations
Start with the relevant bank balances and clearly identify any restricted amounts or facilities whose availability needs confirmation. Separate money already held from funding still being discussed.
- Including an unapproved facility as available cash can make the forecast look comfortable while leaving the real payment problem unresolved.
- Expected receiptsAged debtors and customer payment terms
An aged customer list and the agreed payment terms provide a starting point, but collection history matters too. Identify disputed invoices, part payments, concentration in a few customers and receipts dependent on completing work.
- Use expected payment dates rather than assuming every invoice is collected immediately after it is issued.
- Committed paymentsSupplier, payroll and repayment schedules
Bring supplier balances, payroll information, rent, loan schedules and known tax or other payments. Include planned equipment purchases and one-off costs.
- A forecast based only on last month’s bank transactions can miss a large upcoming obligation that has not yet appeared in the account.
- Operational changesContracts and planned spending records
Explain seasonal demand, new contracts, payment-term changes and planned hiring or expansion. These events can alter both the amount and timing of cash.
- The forecast should connect to the way work is delivered and paid for, rather than treating growth as an automatic improvement in the bank balance.
TEST THE PRESSURE POINTS
See what changes before you commit.
A PRACTICAL WORKING CYCLE
From a cash snapshot to a forward view.
- 01
Understand the recent movements
Review what drove the cash position over the recent period. Distinguish operating receipts and payments from borrowing, owner contributions and larger asset movements.
- This helps identify whether a shortfall is caused by trading performance, collection timing, growth investment or something that should be investigated separately.
- 02
Build the agreed forecast horizon
Place expected receipts and payments into the periods that matter for your decisions. A short-term view may need more detail than a longer planning horizon.
- State the assumptions, known commitments and uncertain items clearly, so the forecast remains useful when actual timing differs from the original estimate.
- 03
Compare outcomes and update
Record actual movements, explain significant differences and revise the remaining forecast. Repeating the process improves the understanding of customer behaviour and payment patterns.
- The aim is to keep the model relevant, not to preserve an old forecast simply because it was presented neatly at the start.
TURN THE VIEW INTO ACTION
Focus on decisions your business can influence.
Collections and payment terms
Use the forecast to identify important overdue amounts and clarify responsibility for follow-up. Review whether invoices are issued promptly and contain the information customers need to pay.
- Any revised customer or supplier terms must be agreed with the relevant party; the forecast itself does not change a contract.
Purchase and spending decisions
Consider the timing of discretionary purchases, inventory orders and expansion costs against the forward cash position. Distinguish a temporary timing gap from an ongoing operating deficit.
- Delaying a payment may shift a problem, while improving the underlying economics may require a different decision.
A useful management discussion
Agree who reviews the forecast, who updates the information and who can approve an action. A short, regular review can be more useful than a complex report produced once.
- Keep unresolved assumptions visible so management knows which conversations or evidence could materially change the picture.
KNOW THE LIMITS
Clarity for planning, without a funding promise.
Cash flow support is not a guarantee of solvency, funding approval or investment performance. If the business is already unable to meet obligations, explain that at the start so the urgency and need for specialist advice can be considered. A spreadsheet should not disguise a situation that requires a different level of intervention.
- Share the main cash concern, available records and approaching decisions, so the initial discussion starts with the problem you need to solve.
- Ask the quote to distinguish a once-off review, forecast preparation and recurring updates, with the responsibilities for each made clear.
- Identify bookkeeping cleanup, financing applications and detailed budgeting separately. These can support the work but should be expressly included where needed.
CONNECT THE NEXT PIECE.
Related support
for your business.
YOUR QUESTIONS. A CLEARER NEXT STEP.
Cash flow management:
frequently asked questions.
01What is the difference between cash flow and profit?
Profit measures performance using the relevant accounting treatment for income and costs. Cash flow follows money received and paid. Unpaid invoices, stock purchases, asset spending and loan movements can make the two differ. Reviewing both helps explain why a profitable period may still feel tight.
02Can you help if our bank balance is low right now?
Explain the immediate commitments, available cash and expected receipts first. A short-term review may help organise the decisions, but it cannot guarantee that the shortfall will be resolved. Where obligations cannot be met, the situation may also require legal, restructuring or other specialist advice.
03Do we need complete annual financial statements?
They can provide context, but a cash review also needs current information about bank balances, customer collections and upcoming payments. Older financial statements alone cannot show next week’s cash needs. Discuss what is available and which missing records need to be prepared first.
04How far ahead should the forecast look?
Match the horizon and detail to the decisions involved. Immediate payment pressure may need a detailed near-term view, while expansion planning may require a broader horizon. The model should identify uncertainty rather than implying that distant receipts can be predicted as precisely as an approved payment.
05Will the forecast help us secure a business loan?
It may form part of the information a lender requests, but approval depends on the lender’s assessment and requirements. Ask for the required format and assumptions before commissioning the report. A forecast should present a supportable view, not inflate expected receipts to satisfy an application.
06Is collecting unpaid invoices included?
A cash review can identify collection priorities and show their impact, but contacting customers or pursuing debt is a separate activity unless agreed. The business should decide who owns that process and how disputes are handled. A forecast cannot replace evidence about whether an invoice is collectible.
07How often should we update the cash forecast?
Update it often enough to support the decisions you make and whenever a material assumption changes. A missed receipt, new contract or unexpected cost can make an earlier version misleading. Agree a routine that is practical for the information available and the level of pressure involved.
Have a question about your situation?
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cash flow management?
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