Cash Flow Management

Cash flow is the life blood of your Club. The importance of projecting the inflows and outflows of your Club’s cash cannot be understated. A Club should prepare, at a minimum, an annual cash flow model which digs down into monthly and, at times, weekly detail.

A cash flow model can help you identify when cash will be tight and how much you will need to either save to get though the slow seasons or how much you might even need to plan to borrow. If a shortfall is indicated, before borrowing is undertaken, we can help you determine if the issue is a temporary cash flow decrease or an overarching operational problem that needs to be addressed; one that borrowing will only temporarily cover up. If borrowing is indicated and there is not an underlying operational problem, a properly designed cash flow model will allow time to secure borrowing so it is in place before the cash need becomes a cash crisis.

The professionals of our Private Club Services Group can help you:

• Prepare a cash flow model
• Identify cash flow problem areas
• Avoid cash flow shortages
• Establish a sufficient reserve to fund cash shortfalls
• Maintain adequate cash flow
• Examine areas of operations that affect cash flow including:
o Accounts receivable
o Accounts payable
o Inventory