Recruiter's Glossary

Examples: Financial Planning • Asset Management • Business Restructuring

Cash Flow Management

Term from Business Advisory industry explained for recruiters

Cash Flow Management is a key business skill that involves tracking, analyzing, and optimizing how money moves in and out of a business. It's like monitoring a company's financial health by watching its 'money traffic.' This includes keeping track of incoming payments from customers, timing outgoing payments to suppliers, and making sure there's always enough money available for daily operations. Business advisors help companies improve their cash flow by suggesting better payment terms, collection methods, and spending strategies. This is different from just looking at profits because it focuses on the timing of money movements, not just the total amounts.

Examples in Resumes

Developed and implemented Cash Flow Management strategies that improved client working capital by 30%

Created effective Cash Flow Management systems for small to medium-sized businesses

Advised startups on Cash Flow Management and working capital optimization

Led Cash Flow forecasting and Cash Flow Analysis projects for retail clients

Typical job title: "Business Advisors"

Also try searching for:

Financial Advisor Business Consultant Financial Consultant Cash Flow Specialist Treasury Manager Working Capital Consultant Financial Planning Analyst

Where to Find Business Advisors

Professional Associations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you help a company that's profitable on paper but struggling with cash flow?

Expected Answer: A senior advisor should discuss analyzing payment terms, inventory management, accounts receivable/payable processes, and creating emergency funding options. They should mention specific strategies like negotiating with suppliers, improving collection processes, and potential financing solutions.

Q: What strategies would you recommend for forecasting cash flow in an uncertain market?

Expected Answer: Should discuss multiple scenario planning, historical pattern analysis, and building in safety margins. Should mention importance of regular forecast updates and monitoring key business indicators.

Mid Level Questions

Q: What are the key components of a cash flow statement and why are they important?

Expected Answer: Should explain operating activities (day-to-day business), investing activities (buying/selling assets), and financing activities (loans/equity) in simple terms, and how each affects business health.

Q: How would you identify early warning signs of cash flow problems?

Expected Answer: Should mention late customer payments, increasing inventory levels, reliance on overdraft, delayed supplier payments, and seasonal fluctuations as warning signs, and explain basic monitoring techniques.

Junior Level Questions

Q: What's the difference between cash flow and profit?

Expected Answer: Should explain that profit is earnings minus expenses on paper, while cash flow is actual money moving in and out of the business, using simple examples to illustrate the difference.

Q: What basic tools can be used to track cash flow?

Expected Answer: Should mention spreadsheets, basic accounting software, cash flow statements, and simple forecasting tools, demonstrating understanding of fundamental tracking methods.