The 3C’s of Cash Flow ( Cash Conversion Cycle)

All Metrics are not created Equal when it comes to understanding where the cash in your business is located.

A common frustration from business owners is “I know I’m making profit but it’s not in my bank account”

The 3C’s of Cash Flow  (otherwise known as your Cash Conversion Cycle) is one metric that’s shatter proof and tells you everything you need to know about where your Profit and your Cash is at the same time.

The 3C’s of Cash Flow are made up of

✔ How many days it takes to collect payment from your customers

✔ How many days you take to pay your suppliers

✔ How many days you keep your Inventory in your Warehouse before you sell it

Measuring these metrics consistently over a period of time gives you insight as to how quickly cash flows through in and out of your business.

Why is this information important ?

Understanding your cash flow allows you to make decisions on how you run your business, how you can maximize your cash and put an end to your frustration!

Virtual CFO’s understand financial strategy and are there to guide your business through the frustration. They have the experience and passion but without the salary of a full-time CFO.

Available on demand so jump on our website and book a free consultation today.

#VCFO #VirtualCFO #finance #cfos #cfo #smes #accounting #accountants


Chris Kondou is a member of the Virtual CFO Association.

The Virtual CFO Association is an elite peer network, advocating and promoting the emerging VCFO sector within the accounting profession. Collectively the association currently has over 500 years of industry experience, with highly qualified and experienced specialists spread across more than 20 industry verticals. If you would like any more information regarding the Association of VCFO’s, please visit our website