18 06, 2020

Three Way Forecasting – managing your cash reserves

By |2020-06-18T12:04:03+10:0018 June 2020|

What is three-way forecasting and how is it performed? Colin Wright explains how understanding the future cash position of the business requires quality planning processes. This is achieved through the three-way forecast. As the name suggests, there are three components to this planning process. The profit & loss forecast determines expected cash flows from operational activities The balance sheet forecast determines expected cash flows based on the balance sheet movements of the business The cashflow forecast is determined from the profit & loss and balance sheet forecasts How well this process will forecast the cash position throughout the forecast [...]

6 04, 2020

Setting up your ‘Cash War Room’ to plan your crisis survival strategy

By |2020-06-18T11:19:41+10:006 April 2020|

Cash is the lifeblood of the business. Colin Wright explains how the business can manage liquidity through the 'Cash War Room' concept, and who should be involved in 'Cash War Room' activities. The Government has set up a War Cabinet to plan Australia’s response to the current pandemic crisis. Similarly, your business needs to set up a Cash War Room to plan your response to the unfolding crisis so that you can survive this period. The immediate risk to ongoing business is one of liquidity. Therefore, there are two key issues that all businesses need to focus on. Ensure [...]

3 04, 2020

Three phases of successfully negotiating the current pandemic

By |2020-04-06T22:17:49+10:003 April 2020|

This article explains how a business can use scenario planning and modelling to make it through the pandemic period successfully and become a stronger business on the other side. We face one of the biggest challenges to business since the Second World War. We all expect that the extreme disruption we're all dealing with could last for six months or even more. It's a fact that many businesses will not survive this period. There will be a mix of luck and natural selection that will determine which businesses survive and thrive. The luck element refers to the fact that [...]

25 03, 2020

Planning now to get your business through COVID-19: two questions

By |2020-04-07T06:32:31+10:0025 March 2020|

While some businesses will prosper in unexpected ways as a result of the pandemic, others will need to plot their course very carefully to survive. Here are the two key questions for business owners and managers to address from a financial perspective in order to plan their way forward in uncharted territory. As we all try to come to terms with the sudden pandemic and what ‘lockdown’ means to us personally and financially, it is very clear that at least for the foreseeable future, life – both business and personal – will be very different.  How we emerge through [...]

14 03, 2020

More encompassing virtual CFO services with new ‘Executive’ package

By |2020-04-07T14:50:23+10:0014 March 2020|

Some companies need more than the usual level of assistance from a virtual CFO. This is why The Virtual CFO Group Australia has developed a specialised service offering. Colin Wright explains the 'Executive Virtual CFO' package - what it means, and when it's most needed. Our virtual CFO offering continues to develop in response to client needs. We have recently introduced our Executive Virtual CFO package as a result of these requests. The Standard Virtual CFO offering is targeted as a support package where the virtual CFO provides the planning framework for business performance targets. Along with the forecasting, [...]

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