Cashflow is one of the most important statement that a finance professional needs to follow when a company financials are in disarray or there is a downside economical conditions. Here is what to do 1) Any company must have PSI (purchase, sales, inventory) and based on that PSI a cashflow cycle must be created 2) this cashflow cycle allows you to project several months into the future, what will be your cash position, do you need to borrow? do you have enough cash to pay your other variable costs, are you making a profit? 3) without cash, you won't be able to pay the short term obligations you have. you maybe profitable from accrual point of view but you have no cash. 4)with shortage in cash, you would need to lessen spending and get credit

To regain control and improve financial management, consider incorporating the following tools: Financial Planning and Analysis (FP&A) Software: Examples: Adaptive Insights, Anaplan, Host Analytics. These tools offer comprehensive financial planning, budgeting, and forecasting capabilities. Business Intelligence (BI) Tools: Examples: Tableau, Power BI, Looker. BI tools can help analyze historical data and generate insights for informed decision-making. Enterprise Resource Planning (ERP) Systems: Examples: SAP, Oracle, NetSuite. Integrating ERP systems can streamline financial processes and provide a centralized platform for managing various aspects of the business. Cash Flow Forecasting Tools: Examples: Float, Pulse, Dryrun. These tools

Get the P&L, along with the cash flow statement. Look those over line by line to see any large variance in sales, expenses, investment activities, financing activities. If so, why? Is the variance because of a mistaken finger that added extra zeros? A lag in sales reporting? Reconciliation failure. Sometimes budgetary issues are simple human error/typos.

Well, as a CFO, facing disarray in business forecasting, I turned to a strategic financial toolkit. At the core, Budgeting Tools for mapping out detailed financial plans, surrounded by Cash Flow Analysis to monitor liquidity. Scenario Planning tools form an outer layer, allowing us to simulate various future states. Financial Dashboards offer real-time visibility, acting as our compass. Finally, Rolling Forecasts adapt to changes, providing a dynamic path forward. This toolkit, visualized as concentric circles with the CFO at the helm, ensures we navigate through uncertainty, steering our business forecasting back on course, ready to face future challenges with confidence.

To get your business forecasting back on track, try using tools like financial modeling software and budgeting solutions for accurate projections. Also, consider systems for managing cash flow and gaining insights, like business intelligence platforms, to ensure financial stability and informed decisions.

A budget variance analysis is a valuable tool in the financial management process, allowing an organization to evaluate its performance against plan and identify areas of deviation. Example of some of the key benefits and steps involved in carrying out a budget variance analysis: 1 - Performance Measurement; 2 - Identification of Deviations; 3 - Analysis of Causes and Effects; 4 - Validation of Assumptions and Methods; 5 - Budget Review and Adjustment; 6 - Improvement of the Forecasting Process.

In a fast-paced business environment, delayed information can be detrimental. Financial management tools offering real-time reporting provide the agility your business needs. Accessing up-to-the-minute insights into financial health, tracking key performance indicators, and making informed decisions on the fly.

El análisis de desviaciones presupuestarias es un proceso fundamental en el control financiero de una empresa, que implica comparar los resultados reales con los presupuestados para identificar discrepancias significativas y entender las razones detrás de ellas. Este análisis se realiza típicamente en términos de ingresos, costos y gastos, examinando las diferencias entre lo planeado y lo logrado. Cuando se encuentran desviaciones, se investiga si son favorables o desfavorables, y se determina si surgieron por factores internos o externos, como cambios en la demanda del mercado, fluctuaciones de precios, eficiencia operativa, entre otros.

El análisis del punto de equilibrio es fundamental para las empresas, ya que proporciona información clave sobre el nivel de ventas necesario para cubrir todos los costos y alcanzar el punto en el que no hay ganancias ni pérdidas. Este análisis permite a las empresas entender su estructura de costos, evaluar la viabilidad de sus operaciones y tomar decisiones informadas sobre precios, volumen de producción y estrategias de marketing. Al conocer su punto de equilibrio, las empresas pueden establecer objetivos realistas, identificar áreas de mejora y optimizar su rentabilidad a largo plazo.

Sensitivity analysis" because it offers a valuable tool for assessing the impact of different variables and scenarios on financial outcomes, which is essential for effective business forecasting and decision-making.

Performing a sensitivity analysis can help improve forecast accuracy, optimize strategic decisions, and manage risk more effectively, allowing companies to be better prepared for a variety of future scenarios.

Sensitivity analysis offers the advantage of helping organizations forecast by showing different outputs for each scenario by altering the inputs. As a result, we are able to view the company from a variety of perspectives.

El análisis de sensibilidad en un negocio es crucial para evaluar cómo ciertas variables o factores externos pueden afectar los resultados financieros o estratégicos de la empresa. Al realizar este análisis, se realizan cambios deliberados en estas variables, como precios, costos, demanda del mercado o tipos de interés, para medir su impacto en los ingresos, costos y beneficios de la empresa. Esta evaluación ayuda a identificar los riesgos potenciales y las oportunidades de la empresa, permitiendo la formulación de estrategias robustas y la toma de decisiones más informadas en entornos comerciales variables y dinámicos.

Financial ratios are powerful tools that can be calculated based on data from a company's financial statements, including the income statement, balance sheet, and cash flow statement. These ratios provide valuable insights into a company's financial health, operational performance, and efficiency. Example of some financial ratios and how they are calculated: 1 - Liquidity: Examples: Current Liquidity Index, Immediate Liquidity Index. Calculation: Current Assets / Current Liabilities. 2 - Return on Equity (ROE), ROE Calculation: Net Profit / Shareholders' Equity. 3 - Total Debt Ratio Calculation: Total Debt / Shareholders' Equity.

Los ratios financieros son herramientas clave para evaluar la salud financiera de una empresa al proporcionar una visión holística de su rendimiento y eficiencia operativa. Estos ratios, que pueden abarcar áreas como liquidez, solvencia, rentabilidad y eficiencia, permiten a los gerentes y a los inversores comprender mejor la situación financiera de la empresa y tomar decisiones informadas. Además, los ratios financieros facilitan la comparación de la empresa con sus competidores y la identificación de áreas de mejora, lo que ayuda a establecer objetivos financieros realistas y a implementar estrategias efectivas para impulsar el crecimiento y la rentabilidad a largo plazo.

You should explore financial management tools to regain control. I personally like to use a platform called Xero, it offers robust features for budgeting, forecasting, and financial analysis. Consider your specific needs and scalability. With the right tool, you can turn financial disarray into a well-organized roadmap for success.