Lawyers are obsessed with measuring profit. Over an extended period profit and cash flow are related, but our workshop feedback shows that many lawyers do not fully understand the link between the two.
Many firms have had to forecast their cash flows in order to understand their financing needs in the coming year and often to substantiate their application for CBILS loan.
When the COVID 19 Crisis struck the Chancellor acted very quickly to help affected businesses and employees with the CJRS Furlough and a range of Government backed loans.
I was talking to a client last week about his cash flow position, and the impact of lockdown. His answer was enlightening. He said “We are living in a fool’s paradise”.
The Covid 19 virus and resultant lockdown is putting firms finances under pressure - and leaders are looking to the finance teams for guidance.
Whenever I start a finance workshop with Partners, especially Managing Partners I ask the delegates what their most pressing issues are.