Dear colleagues,

Let's face an essential truth: Cash Flow matters.

In the 2023 FP&A Trends Survey, when we asked participants about the nature of the planning models used by organisations, only 21% planned and forecasted in an integrated manner of P&L, Balance Sheet, and Cash Flow statements.

Amazingly, 79% of respondents still continue to base their Financial Planning and Analysis processes solely on the P&L. This is a major shortcoming in an environment of uncertainty, where Cash Flow is an increasingly important consideration for any decision-making process.

In this issue, we've gathered articles and useful videos that can help you to master a Cash Flow strategy in your company.

Best regards,

Larysa Melnychuk, CEO and Founder
FP&A Trends Group & International FP&A Board

Cash Flow management isn’t just a necessity. It’s a strategic tool that drives value creation. A clear picture of your Cash Flow gives you the clarity to make profitable decisions.

Watch a discussion on how to adept at Cash Flow strategy to drive value creation with Denise Feece, CFO at Sequel Wire, Della Giguere, Solutions Engineering at Prophix, and Chris Porter, Director of Product Marketing at Prophix to:

• Learn Cash Flow strategies that can help boost your operating margins, reduce debt, and improve borrowing costs;
• Understand how organisations with the use modern tools can elevate their Cash Flow management processes. 

By Ji-Hyun Hwang

In a world where even profitable companies can face bankruptcy due to poor Cash Flow management, uncovering the vital connection between mindset, culture, and performance management in Cash Flow planning is crucial. The author shares practical insights gained from real-world experiences in an international high-tech company, exploring the unforeseen challenges and transformative opportunities that arise when managing Cash Flow.

Read this article to learn how an organisation's approach to Cash Flow can either pave the way to success or lead to financial peril.

By Stéphane Bonutto

In many companies, the processes and tools to manage profit and loss (P&L) are quite developed, but the Cash Flow is not always understood and does not always receive the same level of attention. What are the reasons for this, and how can Financial Planning and Analysis improve the situation?

Read this article to get insights on how to drive Cash Flow efficiently and craft effective Cash Flow reports.

By Amrish Shah

In the world of business, where profitability doesn't always guarantee financial stability, understanding the risks of neglecting Cash Flow is crucial.

Read this article, where Amrish Shah, CFO at Metabolic, addresses the common disconnect between FP&A and Cash Flow management and the potential dangers it poses.

The author provides practical guidance on making the crucial shift from a "profit" perspective to a "profit and cash" perspective, highlighting the importance of integrating Cash Flow considerations into every decision and transaction.

By Michael Huthwaite

To thrive today, companies need to step away from a traditional profit-driven mindset. They need to adopt a “Cash Flow” mindset that has a complete financial view, is more agile, focuses on life cycles rather than rigid time frames, and takes a portfolio management approach.

In this short video, Michael Huthwaite, Corporate Finance Director at Walmart, explains how you can change the playbook and create real value for your business.

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8 November 2023

Curious about the fundamental principles behind Real-Time and Continuous Planning, and interested in implementing this cutting-edge system within your organisation?

Join this webinar where experienced finance professionals from PepsiCo, Ultimate Medical Academy and Workday will share their insights and practical knowledge, shedding light on how to successfully embrace and execute these state-of-the-art methodologies.

22 November 2023

FP&A Scenario Management is an agile and powerful tool that helps organisations not only foresee multiple alternative futures but also actively shape them. So, what steps should be taken to ensure the successful transition to Scenario Management?

Join this webinar to learn the answer and hear practical insights and recommendations from senior finance practitioners and thought leaders from industry giants like Coca-Cola GmbH, Falck and Jedox.

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