Group Financial Controller · FP&A · Finance Transformation
Profitability and liquidity are related, but they are not the same. A profitable company can still experience pressure if collections are slow, inventory absorbs too much cash, payment commitments are poorly timed or management lacks a clear short-term cash view.
Cash visibility comes first
The foundation of cash control is a reliable forecast. A practical short-term cash forecast should combine opening balances, expected collections, committed payments, payroll, taxes, financing obligations and major planned purchases. The objective is not perfect precision; it is early visibility of risk.
A rolling 13-week view is often useful because it is close enough to operational reality while still giving management time to act. The forecast should be refreshed frequently and compared with actual cash movements so assumptions improve over time.
Working capital needs ownership
Receivables, payables and inventory are not only accounting balances. They are operating levers. Strong working capital management requires clear responsibility for overdue receivables, disciplined payment scheduling and active review of slow-moving or excessive inventory.
Finance should make these exposures visible by customer, supplier, branch, product and aging bucket where relevant. Concentration matters too: when a large share of cash depends on a few customers or channels, management should see that risk early.
Payment control should protect both liquidity and operations
Good cash management is not simply delaying every payment. It is prioritizing obligations intelligently, protecting critical suppliers, avoiding unnecessary penalties and matching payment timing with expected inflows. A controlled payment process also improves governance by separating request, approval, payment and accounting responsibilities.
Cash discipline creates management confidence
When management has a current view of liquidity, expected inflows, committed outflows and working capital risks, decisions become more deliberate. Cash stops being a month-end surprise and becomes part of the operating rhythm of the business.