Build a usable forecast
A forecast should distinguish committed flows from estimates and identify assumptions behind significant amounts. Regular comparison with actual outcomes can improve its usefulness.
Consider access and concentration
Available cash, committed facilities and less liquid assets are not interchangeable. Provider concentration and contractual restrictions may affect access when circumstances change.
Prepare for variability
Seasonality, customer concentration and exceptional expenditure can change the liquidity profile quickly. Review buffers and escalation procedures in the context of the company’s obligations.