The most dangerous sentence I've heard in the business world is: "We announced very good profits this year."
Congratulations. So, where is that profit? In your bank account, or in your customer's pocket? Or in the stocks gathering dust in your warehouse?
If you look rich on paper but break out in cold sweats when paying salaries at the end of the month; let me tell you a painful truth, with "Financial Engineer" clarity: Your company is obese. You're eating (making revenue) but can't digest (convert to cash).
There's a simple rule in finance literature: "Profit is vanity, Cash is sanity."
Today I will tell you that art that your accountant doesn't tell you about, and your banker doesn't want you to know: "Cash Flow Engineering."
1. Banks Are Not Your Friends
When most bosses experience cash crunch, their first reflex is to push "Credit Limits". This is like drug addiction. It doesn't solve the problem, only postpones it and increases the cost.
Banks are institutions that "give you an umbrella in good weather and take it back in rainy weather". Real financial freedom is not in bank credit; it's hidden in the cash cycle you create yourself. At Dizdar Audit, we teach our clients not to "find credit" but to "not need credit".
2. Cash Flow Is an "Engineering" Problem
Cash management is not just "collecting receivables". This is the subject of Industrial Engineering and Statistics. We call this "Cash Conversion Cycle (CCC)".
The formula is simple but its application requires "surgical precision":
- How late do you pay for raw materials?
- How fast do you produce and sell the goods?
- How fast do you collect the money?
If there's goods that have been sitting in your warehouse for 6 months, that goods is no longer stock, it's "Cash on the Shelf". You can't say you made a profit without extracting that money buried there and putting it in the cash register. Our Industrial Engineers and Statisticians do exactly this: They reduce friction coefficients and increase the speed of money in the company.
3. Who Will Be "King" When Crisis Comes?
Everyone is a genius when the economy is good. But when the waters recede, it becomes clear who was swimming naked. In an inflationary environment, in a volatile market, those who survive are not "the best sellers" but "those with cash in their register."
The Early Warning Systems we've established as Dizdar Audit show you today the cash position 12 weeks ahead. A captain who knows the ship will hit a rock 3 months in advance doesn't panic; he just changes course.
Conclusion: Don't Play with the Physics of Money
Your company may be a Ferrari. Its engine (production) may be very powerful, its body (brand) may be very cool. But if there's no gas (cash) in its tank, that Ferrari is no different from a pile of scrap.
We promise you not to "keep accounting" but to build a gas station that will keep that Ferrari's tank constantly full.
Stop boasting about virtual profits on the balance sheet. Come, let's turn the mathematics and physics of money in your favor.
Because what puts you to sleep peacefully when you lay your head on the pillow at night is not revenue; it's Cash.