Sydney CPA: Optimize Cash Flow, Liquidity & Working Capital
Strengthen cash flow, liquidity, and working capital with AI-enhanced forecasting, AI DCF valuation, and proven CPA advisory for funding, growth, and compliance Ding Financial — cash flow, liquidity & working capital specialists
Content reviewed and verified by Graham Chee, with 25+ years in accounting, taxation, investment management, governance, risk & compliance. Last reviewed January 2026. Next review scheduled for April 2026.
Introduction
Why this matters for your business
Principal Advisor Graham Chee, FCPA (Fellow of CPA Australia), draws on 25+ years and 500+ Australian SMEs of experience in Unlock finance readiness with AI-enhanced cash flow forecasting, liquidity planning, and working capital optimization. We combine AI DCF valuation with CPA advisory to support funding, growth, and compliance..
As a recognized FCPA (Fellow of CPA Australia – top 5%) with more than 25 years advising 500+ Australian SMEs, Graham brings proven, expert, and recognized guidance to Sydney-based owners, CFOs, and finance managers preparing for funding, valuation, or expansion AI DCF valuation and business valuation methods. With multiple Finalist recognitions spanning 9+ years, and topic expertise aligned to APES 225 Valuation Services, we help businesses translate financial data into lender- and investor-ready insights.
In this article, you’ll learn the core concepts behind cash flow, liquidity, and working capital; how AI-enhanced forecasting and AI DCF valuation inform funding and strategy; and a practical, step-by-step approach to improve resilience, support growth, and maintain compliance.
Key Considerations
Essential points to understand
Cash flow vs profit: Profit doesn’t pay the bills—cash does. Understand the cash conversion cycle (from paying suppliers to collecting customers) and how receivables, payables, inventory, and WIP tie up cash.
Liquidity runway and 13-week visibility: A rolling 13-week cash flow (plus a 12–24 month view) shows your liquidity runway, covenant headroom, and timing of cash gaps. Track current ratio, quick ratio, net working capital, and debt service coverage (DSCR).
AI-enhanced forecasting: Use bank feeds and accounting data (Xero, MYOB, QuickBooks) to model seasonality, payment behaviors, and pipeline probabilities. AI speeds scenario analysis, but professional oversight validates assumptions and exceptions.
Working capital levers: Pull the right levers in order—credit policy and collections, invoicing cadence and milestone billing, supplier term negotiations, early-payment programs, inventory policies (ABC analysis, reorder points, safety stock), and WIP discipline.
Funding readiness and valuation: Tie operational plans to AI DCF valuation to quantify the value impact of cash initiatives. Align with APES 225 Valuation Services for recognized methodology, scope, and independence when engaging lenders or investors.
Governance and compliance: Establish weekly cash reviews, variance commentary, and board-ready reporting. Keep BAS/GST, PAYG, superannuation, and ATO obligations current to maintain lender and investor confidence.
Practical Application
How this works in real businesses
Professional services and consulting: Project work often creates uneven billing and late collections. Practical fixes include progress invoicing linked to milestones, retainers or deposits for new engagements, and automated reminders with clear credit terms. AI forecasting can anticipate slow months and recommend actions like accelerating billings or arranging short-term facilities.
Wholesale, distribution, and e-commerce: Inventory absorbs cash. Combine demand forecasting with supplier term strategies (e.g., extended terms, partial prepayments, or consignment). Implement reorder points and ABC inventory policies to reduce overstock while protecting core SKUs. Model the trade-off between early-payment discounts and your cost of capital.
Construction and project-based businesses: WIP, retentions, and long payment cycles pressure liquidity. Standardize progress claims, ensure documentation is complete, and schedule claims to align cash inflows with payroll and subcontractor outflows. Use a 13-week cash view to plan around retentions and consider facilities geared to progress claims or invoice finance.
SaaS and recurring-revenue models: Cash improves with annual prepayments and aligned billing terms. Forecast ARR/MRR, churn, and expansion to plan hiring and platform spend without eroding runway. Coordinate revenue recognition with cash timing for accurate board reporting and lender discussions.
Funding preparation: Before approaching lenders or investors, build a lender-ready pack: 13-week cash flow, rolling 12–24 month forecast, working capital policies, AR/AP aging, covenant projections, and an AI DCF valuation that ties to your operating model. This shows credible planning, sensitivity to downside scenarios, and responsible governance.
Recommended Steps
A structured approach
Assess
Map your cash conversion cycle and liquidity runway. Assemble bank transactions, AR/AP aging, inventory/WIP reports, pipeline data, payroll and tax calendars. Identify bottlenecks and calculate baseline ratios (current, quick, DSCR, DSO/DPO/DIO).
Plan
Build an AI-enhanced 13-week cash forecast and a 12–24 month operating model. Define working capital policies (credit terms, invoicing cadence, supplier terms, inventory parameters). Run scenario and sensitivity analyses and connect to an AI DCF valuation consistent with APES 225.
Implement
Execute priority levers: improve billing discipline, automate collections, renegotiate supplier terms, optimize stock levels, and align project milestones. Prepare a lender-ready pack and evaluate facilities (overdraft, invoice finance, trade finance, asset finance) that fit your cash profile.
Review
Hold weekly cash huddles, track variances, monitor covenants, and refresh scenarios. Update the AI DCF valuation as assumptions change and ensure reporting remains board- and investor-ready.
Common Questions
What business owners ask us
Q.How accurate is AI cash flow forecasting?
AI models learn from your historical cash patterns and pipeline, then project likely inflows and outflows. Accuracy improves with clean data, consistent processes, and professional oversight. We use scenarios and sensitivity bands to manage uncertainty rather than rely on a single-point estimate.
Q.What data do we need to start?
Your accounting file (Xero, MYOB, or QuickBooks), bank statements/feeds, AR/AP aging, inventory or WIP schedules, sales pipeline, payroll cycles, and tax calendars (BAS/GST, PAYG, superannuation). We also review contracts for billing and payment terms.
Q.Why use a 13-week cash flow?
Thirteen weeks covers a business quarter—long enough to capture payroll cycles, tax obligations, and supplier terms, but short enough for actionable weekly management. It helps anticipate cash gaps early and coordinate funding or operational adjustments.
Q.How does AI DCF valuation support funding?
A DCF links enterprise value to free cash flow. By aligning your operational forecast with DCF, you can show lenders and investors how working capital and growth plans translate to value, supported by APES 225-compliant methods and documentation.
Q.Can this help if we are already profitable but cash is tight?
Yes. Tight cash often reflects working capital issues—slow collections, fast payables, or inventory build-up. Targeted policy changes and forecasting discipline can release cash without cutting growth-critical spend.
About the Author
Graham Chee, FCPA, GRCP, GRCA, IAIP, IRMP, ICEP, IAAP
Principal Advisor & Founder
Graham Chee is a highly qualified business advisor with over 25 years of professional experience spanning accounting, taxation, investment management, governance, risk, and compliance. As a Fellow of CPA Australia (FCPA), Graham brings deep technical expertise combined with practical business acumen. His qualifications include Governance Risk and Compliance Professional (GRCP), Governance Risk and Compliance Auditor (GRCA), Integrated Artificial Intelligence Professional (IAIP), Integrated Risk Management Professional (IRMP), Integrated Compliance and Ethics Professional (ICEP), and Integrated Audit and Assurance Professional (IAAP). Graham has advised hundreds of Australian SMEs on strategic planning, succession, business valuation, and compliance matters, helping business owners build sustainable, valuable enterprises.
Areas of Expertise:
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