How a CFO Helps Businesses Get Control of Cash Flow
Cash flow is the lifeblood of every business — and the #1 reason most Australian businesses fail. Even profitable companies can run into serious trouble if they don’t get the timing of money in vs. money out right.
Over the years, I’ve seen too many $1m–$20m businesses making big decisions based on their bank balance and gut feel. That works — until it doesn’t. A single bad month, a slow debtor, or a tax surprise can throw everything into chaos.
That’s where a CFO (even on a fractional basis) makes all the difference.
What a CFO Really Does for Cash Flow
My role as a CFO isn’t bookkeeping or compliance. It’s about building visibility and strategy into how money moves through your business. That usually starts with:
Forecasting with clarity: not a clunky spreadsheet you update once a quarter, but a rolling forecast (often 13 weeks) that’s always current and designed to highlight risks before they bite.
Cash flow analysis: understanding where money is leaking, which customers or contracts are stretching you, and where opportunities to free up working capital exist.
Strategic planning with the CEO: linking the numbers to your business goals — growth, acquisitions, exits — and ensuring cash supports strategy.
Common CFO Cash Flow Strategies
Here are a few tools and approaches I use with clients:
Debtor management that works — consistent follow-ups, clearer terms, offering card payments, even credit checks. These small process changes often accelerate collections by weeks.
Supplier & payment term negotiations — extending creditor days, aligning orders and payments with inflows. Sometimes it’s as simple as asking; other times it’s about restructuring contracts to release trapped cash.
Invoice financing / debtor finance — once only for the big end of town, now widely available in Australia. The right facility can turn 30–60 day terms into 2–3 days, giving you cash when you need it.
Lazy cash to working cash — too many businesses sit on balances that aren’t working for them. CFOs make sure excess cash is earning interest, paying down expensive debt, or fuelling growth.
Contingency buffers — pre-approved overdrafts, short-term facilities, or high-interest accounts give you a safety net. Even if you never draw them down, they remove sleepless nights.
Cash Flow Done Right
Cash flow issues aren’t always about survival — they’re about opportunity. When you can see clearly and plan ahead, cash becomes a lever for growth instead of the thing keeping you awake at night.
That’s what I help businesses achieve.