Cash Flow Health Assessment
Evaluate your cash management practices across 5 key dimensions. Takes about 10-15 minutes to complete.
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0 / 40 questions
Cash Visibility & Monitoring
How well do you understand and track your current cash position?
How often do you know your exact cash balance across all accounts?
Consider checking all bank accounts, credit lines, and cash equivalents.We have a single dashboard or report showing our consolidated cash position.
A unified view of cash across all accounts and entities.We can see upcoming cash inflows and outflows for the next 2 weeks.
Visibility into scheduled receipts and payments.Our cash position data is accurate and up-to-date.
No significant discrepancies between reported and actual cash.We track cash by business unit, project, or cost center.
Ability to see cash allocation at a granular level.We have alerts for low cash balances or unusual transactions.
Automated notifications for cash-related events.We reconcile bank accounts promptly (within 2-3 days).
How quickly discrepancies are identified and resolved.Management receives regular cash position reports.
Formal reporting to leadership on cash status.Receivables Management
How effectively do you manage customer payments and collections?
We have a formal credit policy for evaluating new customers.
Documented criteria for extending credit terms.We review customer credit limits regularly.
Periodic reassessment of customer creditworthiness.Invoices are sent within 24-48 hours of delivery/service completion.
Speed of invoice generation and delivery.We have a structured collections process with defined follow-up steps.
Documented escalation process for overdue accounts.We track Days Sales Outstanding (DSO) and act on trends.
Monitoring and managing the time to collect.We offer incentives for early payment (discounts, etc.).
Using payment terms to accelerate collections.We use electronic payment methods to speed collections.
ACH, credit cards, or other fast payment options.We have low bad debt write-offs (less than 1% of revenue).
Uncollectible accounts as a percentage of sales.Payables Optimization
How strategically do you manage vendor payments and terms?
We have negotiated favorable payment terms with key vendors.
Extended terms (Net 45, Net 60) or other favorable arrangements.We strategically time vendor payments to optimize cash.
Paying on the due date rather than early, unless discounted.We take advantage of early payment discounts when beneficial.
Evaluating ROI of early payment discounts.We have a clear approval process for vendor payments.
Defined authorization levels and controls.We track Days Payables Outstanding (DPO) and optimize timing.
Monitoring and managing payment cycles.We batch payments to reduce processing costs and optimize cash flow.
Consolidating payments on set schedules.We regularly review and renegotiate vendor contracts.
Periodic reassessment of vendor terms and pricing.We maintain good vendor relationships while optimizing cash.
Balance between cash management and vendor partnerships.Working Capital Efficiency
How efficiently do you manage your operating cash cycle?
We actively manage our cash conversion cycle.
Focused effort to reduce the time from cash out to cash in.Our inventory levels are optimized to minimize cash tied up.
Balance between stock availability and cash investment.We have access to a line of credit or short-term financing.
Available credit facilities for working capital needs.We maintain an appropriate cash reserve for operations.
Buffer for unexpected expenses or slow periods.We review and optimize our working capital metrics regularly.
Periodic analysis of current ratio, quick ratio, etc.We have clear targets for key working capital ratios.
Defined goals for current ratio, DSO, DPO, etc.We actively manage seasonal cash flow variations.
Planning for and smoothing seasonal cash patterns.Excess cash is invested appropriately to earn returns.
Not leaving significant cash idle in low-interest accounts.Financial Planning & Forecasting
How well do you plan for and predict future cash needs?