Group Financial Controller · FP&A · Finance Transformation
One of the first numbers I want to see in a finance function is not monthly profit. It is how much cash we actually have today, what we expect to collect, and what we need to pay next.
A company can report good sales and profit and still face a liquidity problem. The gap usually appears when receivables are collected late, payments are not planned, inventory absorbs cash, or management sees the cash position only at month-end. For me, cash flow management works best as a daily, weekly and monthly routine.
Daily: know the cash position before making decisions
The daily report should be short enough to read in a few minutes. I want one clear view showing opening bank and cash balances, collections received, payments made, payment gateways or unsettled balances, and the available liquidity at the reporting cut-off.
I also want to see what is expected today: customer collections, supplier payments, payroll or tax obligations, and any large or unusual cash movement. If there is a shortfall, finance should know it before the payment request reaches the bank.
The daily reports I consider essential
1. Daily liquidity position. Bank balances, cash, payment gateways, restricted or committed balances, and total available liquidity.
2. Daily collections report. Collections received by customer, overdue balances still outstanding, and the major collection commitments expected over the next few days.
3. Payments due report. Approved payments due today and shortly after, classified by priority rather than simply by invoice date.
4. Bank and settlement exceptions. Unreconciled bank movements, POS and payment-gateway settlements, transfers in transit, and unusual items that need investigation.
5. Short-term cash outlook. Opening liquidity + expected inflows − committed outflows = expected closing liquidity. It is simple, but it forces the team to look forward rather than only explain what already happened.
Weekly: move from position to planning
The weekly review should answer a different question: where is liquidity heading? I prefer a rolling cash forecast, ideally covering the next 13 weeks, with more detail in the first few weeks. It should include realistic collection assumptions, approved and expected supplier payments, payroll, VAT and other taxes, financing commitments, capex and any significant one-off cash requirements.
The most useful part is not the forecast itself. It is comparing last week's forecast with actual cash movements. If collections repeatedly arrive later than expected, or payments are consistently missing from the forecast, the assumptions need to change.
The weekly meeting should also focus on working capital: overdue receivables, major customer concentrations, upcoming supplier commitments, inventory that is tying up cash, and actions with clear owners and dates.
Monthly: connect liquidity to business performance
At month-end, I want to understand why cash changed, not only what the closing balance is. The monthly cash flow view should reconcile opening cash to closing cash and separate operating, investing and financing movements.
I also review working-capital trends, DSO and collection performance, payable commitments, inventory movement, forecast accuracy and the relationship between profit and operating cash flow. A growing profit figure with deteriorating cash conversion deserves attention.
A report is useful only when it leads to action
I do not believe finance teams need dozens of cash reports. They need a small set of reliable reports with clear ownership. Daily reporting protects today's liquidity. Weekly forecasting gives management time to act. Monthly analysis shows whether the business model is converting performance into cash.
The objective is simple: management should never be surprised by a cash shortage that finance could have seen coming.