The cash flow blind spot

Friend

I'm really struggling with cash flow. We're acquiring customers, our sales are growing, yet we're still having difficulty meeting day-to-day expenses. I can't figure out what I'm missing.

Ajayya

What do you think the issue could be?

Friend

I thought it might be high labour costs, or technology, or gaps in marketing. But our team is solid, we've invested wisely, and customer acquisition is on track. We're generating revenue, yet somehow the money isn't there when we need it.

Ajayya

You're not alone. Many businesses face this, and surprisingly, it's not usually about sales, people, or technology. It's often financial decisions being made without anyone realising their long-term impact.

Friend

What do you mean?

Ajayya

A lot of non-finance people — sales teams, procurement managers — make financial decisions without seeing their full effect on cash flow. Your sales team might close a deal thinking it's profitable, but not account for delayed payments or the operational cost of servicing it.

Friend

I've never thought about it that way.

Ajayya

Similarly, purchasing decisions get made on price without considering timing. Say you buy inventory in bulk for a discount. If your customers take months to pay, you can run out of cash even while being technically profitable.

Friend

So what's the solution?

Ajayya

Financial awareness across departments. It isn't only the finance team that needs it. Sales, procurement and operations should all be able to recognise how their decisions affect profitability and cash.

Friend

How do I implement that?

Ajayya

A financially intelligent action is any decision that positively affects both cash flow and the bottom line. For an organisation to be financially intelligent, every employee has to be aligned with that — not just the CFO. Only then does a business move towards stability.