Sydney CPA: Optimize Cash Flow, Liquidity & Working Capital
Unlock cash flow and liquidity with AI-driven forecasting and working capital diagnostics for resilient, cash-efficient growth. Sydney Accountants — local CPA services for cash flow & liquidity
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 cash flow and liquidity with AI-driven forecasting and working capital diagnostics. Our Sydney CPA advisory delivers quick wins and a clear roadmap to improve cash conversion and financial resilience.. As a recognized FCPA who has supported hundreds of founders and finance leaders across Sydney and Australia, Graham combines proven cash flow practices with modern AI-driven analysis to help businesses strengthen liquidity, shorten the cash conversion cycle, and build resilience.
In this article you will learn the key concepts that drive cash flow performance, how AI-enabled forecasting and diagnostics work in real businesses, and a structured approach to achieve quick wins while embedding long-term working capital discipline business budgeting and forecasting strategies with AI-driven forecasting. Graham’s credentials include FCPA, APES 225 Valuation Services expertise, and 9+ years of recognition as a multiple finalist, reflecting an expert advisory track record.
Key Considerations
Essential points to understand
Cash flow vs. liquidity vs. working capital: Cash flow is the movement of cash in and out of the business; liquidity is your ability to meet obligations when due; working capital is current assets minus current liabilities. Strong management aligns all three to ensure solvency, stability, and capacity to invest.
Cash conversion cycle (CCC): The CCC tracks how long cash is tied up from paying suppliers to collecting customers. Focus on days sales outstanding (DSO), days inventory outstanding (DIO), and days payable outstanding (DPO). Small, sustained improvements in each driver compound into meaningful liquidity gains.
AI-driven forecasting: AI enhances rolling 13-week and 12-month forecasts by detecting seasonality, billing patterns, and risk signals in receivables, payables, and inventory. It works best when data quality is sound, chart of accounts is structured, and posting disciplines are consistent.
Working capital levers: Tighten credit terms and collections, rationalise SKUs and reorder points, negotiate supplier terms, align pricing and margin by customer/product, and schedule capex carefully. Embed policies, approval matrices, and cadences so improvements stick.
Risk, governance, and covenants: Establish cash governance with weekly liquidity reviews, scenario testing, and triggers tied to bank covenants. Create a funding plan that considers overdrafts, invoice finance, inventory facilities, and contingency buffers.
Transaction and valuation context: For M&A or shareholder transitions, APES 225 Valuation Services provides a framework to assess normalised working capital, seasonality, and cash flow quality—critical for price, warranty, and completion account negotiations.
Practical Application
How this works in real businesses
Professional services and SaaS in Sydney: Forecasts built from pipeline, billing schedules, and utilisation data reveal timing gaps between project delivery and cash collection. Practical moves include milestone invoicing, progress claims, automated reminders, and client segmentation for tailored terms. AI models flag clients that consistently pay late or require deposits.
Wholesale and distribution: Inventory diagnostics identify slow-moving SKUs, safety stock misalignment, and supplier MOQs that inflate DIO. Actions include SKU rationalisation, vendor-managed inventory trials, improved demand planning, and early-payment discounts balanced with negotiated DPO extensions.
Construction and trades: Claims-based cash cycles benefit from forecasted claim dates, approval lags, and retentions tracking. Practical steps: tighten variation approval workflows, align subcontractor payment timing to client receipts, and use project WIP reporting to avoid unbilled revenue build-up.
E-commerce and retail: Daily cash visibility connects sales, fulfilment, shipping, and returns. Tactics include dynamic reorder points, payment gateway settlement analysis, and returns policy tuning to protect margin and cash. AI helps predict promotional lift versus inventory holding costs.
Bank and investor readiness: A credible 13-week cash flow with scenarios and variance analysis supports covenant discussions, refinancing, and board decisions. Transparent assumptions, reconciliation to actuals, and governance cadence increase confidence for lenders and investors.
Why expert guidance matters: Experienced advisors streamline data preparation, apply proven frameworks, and interpret results quickly. With 25+ years advising 500+ Australian SMEs, our recognized FCPA advisory integrates AI tools with pragmatic controls so your team can execute and sustain improvements.
Recommended Steps
A structured approach
Assess and Baseline
Map current cash cycle, policies, terms, and data quality. Establish a 13-week cash view and baseline CCC, DSO, DIO, and DPO by segment.
Model and Prioritise
Build AI-enabled forecasts and scenarios. Identify quick-win levers (collections cadence, terms changes, inventory right-sizing) and quantify impact versus effort.
Execute and Enable
Implement targeted changes with ownership, approvals, and KPIs. Align AR workflows, purchasing rules, and inventory parameters. Prepare lender packs if funding is needed.
Monitor and Govern
Run weekly cash huddles, track forecast vs. actual, and adjust. Embed policies, dashboards, and escalation triggers to maintain resilience.
Common Questions
What business owners ask us
Q.How is cash flow different from liquidity and working capital?
Cash flow is movement of cash; liquidity is your ability to meet obligations when due; working capital is current assets minus current liabilities. You need all three aligned: stable cash inflows, adequate liquid buffers, and efficient working capital.
Q.What data do I need for AI-driven cash forecasting?
Clean AR and AP ledgers, invoice dates and terms, receipts and payments history, inventory movements, payroll cycles, tax schedules, and sales pipeline or order book. Consistent chart of accounts and posting discipline improve accuracy.
Q.Which metrics should I track weekly?
Cash position and runway, forecast vs. actual variance, top overdue receivables and root causes, DSO/DIO/DPO trends, upcoming tax and payroll obligations, covenant headroom, and exceptions that require escalation.
Q.Will I need external funding to improve liquidity?
Not necessarily. Many businesses unlock cash through collections, terms, and inventory changes. If a temporary gap remains, consider options like overdrafts, invoice finance, or inventory facilities alongside operational improvements.
Q.Where does APES 225 Valuation Services fit?
APES 225 provides a professional framework for valuation work, including normalised working capital and cash flow quality assessments. It is valuable for transactions, shareholder changes, or strategic planning that relies on reliable cash flow assumptions.
Conclusion
Get expert guidance for your next step
Sydney businesses can strengthen cash flow, liquidity, and working capital with a practical, data-driven approach. With proven expertise across 500+ Australian SMEs, recognized FCPA credentials, and APES 225 Valuation Services capability, Principal Advisor Graham Chee provides clear, actionable advice and governance that lasts. Contact our team to discuss your situation and receive a tailored roadmap that balances quick wins with long-term resilience.
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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