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Success Story - Improving Non-Profit Cash Management

Forecasting cash to assure efficient use of working capital

Superior consulting services delivering successful accounting and finance outcomes

A non-profit organization was struggling with managing its cash flow. They desired a fresh look at their use of cash and credit, and how improvements in cash forecasting would optimize their working capital. They came to Aventine Hill Partners for help.

Our Solution

We provided an accounting and finance consultant with deep expertise in cash management, forecasting, and Treasury operations. Our consultant performed a comprehensive analysis of the financial statements; budget; and cash inflows and outflows. It was determined that the existing cash forecasting approach was insufficient to support the organization's current operating budget.

Our consultant created a new cash forecast model that more accurately accounted for all cash inflows and outflows. This model was used to analyze and optimize how cash and credit were managed on a short term basis. To address long term financial considerations, debt covenants and other legal documents were analyzed to develop a multi-year forecast.

To help assure sustainability of the cash management improvements, internal control improvements were recommended and the skills of the accounting team were assessed to identify areas for improvement. Training on the new cash forecasting process and controls was provided to transition cash management back to the internal accounting team.

Results

This non-profit organization now forecasts cash more effectively and better manage its working capital. It also has a longer term plan to manages its multi-year debt obligations. Learn more about our Financial Analysis, Planning, and Modeling capabilities.



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