As interest rates increase, what effect will this have on your company’s cash flow? The costs of carrying excess inventory will be increasing as well, impacting your company’s bottom line. [basic-code]™ helps companies identify their unproductive inventory, determine optimal inventory levels and increase their turnover rates. One company was able to increase their turn from 6.0 to 8.2, by acting on the indicators. This represents an estimated 27% reduction in actual inventory resulting in better cash flow and a savings on the interest of carrying that excess inventory plus your other costs.

A 2017 survey by the Small Business Administration shows that 50 % of small to mid-size businesses fail within five years, and only 1/3 survive more than ten years. This is largely due to a lack of cash flow. It is critical for the business owner to know their cash balance at all times. In addition to the Balance Sheet and Profit and Loss statements, a cash flow forecasting system is a necessary tool for a small business. For companies with inventory, the cash flow forecasting system should include an Open to Buy.