Ask the CFO: Cash Flow

This week’s Ask the CFO session was an incredible deep dive into one of the most crucial aspects of running a business—cash flow management. We explored why traditional cash flow statements often fall short and how businesses can take a more proactive approach to financial planning.

Key Takeaways from the Session

✅ Why a 13-Week Cash Flow Forecast is Essential
Many business owners rely on historical cash flow statements, but these reports only tell you where you’ve been—not where you’re going. A 13-week cash flow forecast gives businesses a forward-looking view, allowing them to anticipate cash shortfalls, make informed spending decisions, and keep operations running smoothly.

✅ Budgets vs. Forecasts: Understanding the Difference
One of the most common misconceptions is using “budget” and “forecast” interchangeably. While a budget is a static plan set at the beginning of the year, a forecast is dynamic and should be adjusted regularly based on actual performance. Having a clear understanding of these differences helps businesses stay agile and make smarter financial decisions.

✅ Avoiding the “Illusion of Profitability”
A key challenge for many businesses—especially in the $5 to $50 million range—is misinterpreting their financial health. Revenue may be strong, but without the right cash flow management, businesses can still find themselves struggling to cover operational costs. This is where cash flow projections become invaluable.

✅ Creating a Cash Culture in Your Business
Managing cash flow isn’t just the job of the CFO—it’s a team effort. Encouraging department heads to participate in forecasting discussions helps improve financial awareness across the company. Businesses that foster financial literacy within their teams are better equipped to handle unexpected cash challenges.

✅ Lessons from Past Financial Crises
Drawing from experiences during the 2008-2009 financial crisis, we discussed how businesses that implemented strong cash flow forecasting early on were better prepared to navigate downturns. The lesson? The sooner you get a handle on your cash flow, the more resilient your business will be.

What’s Next? Join Us for the Next Session!

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These sessions are free, open Q&As, where I kick off with a 15-minute financial deep dive and then open the floor for your most pressing business finance questions. Whether you’re looking for strategies to smooth out cash flow fluctuations, plan for growth, or just gain more financial clarity, this is your opportunity to get direct insights from a CFO.

If you know another business owner or financial leader who could benefit, please pass this along! The more people join the conversation, the more valuable it becomes.