How can CFOs stop cash leaks and drive growth?

How can CFOs effectively manage cash flow while driving growth?

In this webinar, we discussed critical strategies for optimizing cash flow and fueling business growth with Steve Rosvold, founder of CFO.University.

With 58% of CFOs ranking cost optimization as a top concern and 63% relying on internal cash flow due to economic uncertainty, it's crucial to address cash management challenges. But how can CFOs ensure they're making the most of their available cash while positioning their companies for growth?

From avoiding common pitfalls to implementing advanced working capital strategies, Steve shares real-world examples and experience-backed insights to help CFOs optimize cash flow and drive sustainable business growth.

Key Insights:

• 13-Week Cash Forecasting: Implement a 13-week cash forecast to maintain liquidity and proactively manage cash needs.
• Optimizing the Cash Conversion Cycle: Focus on reducing Days Sales Outstanding (DSO), improving inventory turnover, and negotiating better payment terms with suppliers.
• Cross-Functional Cash Literacy: Educate your teams on cash management principles to enhance collaboration and improve financial decision-making across the organization.
• Strategic Capital Planning: Align your capital planning with growth objectives to effectively manage debt while scaling operations.
• Managing Variable Revenue Streams: Stabilize cash flow by implementing minimum payment thresholds and balancing fixed and variable charges.

These actionable insights are crucial for CFOs aiming to enhance financial stability and support their company's long-term growth.

Speakers

Steve Rosvold, Founder at CFO.University

Saurabh Agrawal, Cofounder and CPTO at Zenskar

Webinar summary

1. What is the first thing you recommend a new Chief Financial Officer do to get control over cash?

At every company I join, I begin with a 13-week cash forecast. It came from turnaround and bankruptcy practices but applies to any business. This method uses actual bank inflows and outflows, not just accrual accounting. It reveals gaps between cash collected and payments made. One client discovered a mismatch between deliveries and invoicing that no one saw before. But the real power comes from comparing forecasts with actual results weekly. That is where you learn where the leaks are—missed shipments, late payments, timing issues. It is the fastest way to learn how a company truly operates financially.

2. How can a Chief Financial Officer build cash literacy across departments?

Cash literacy must go beyond the finance team. I always train leadership on the Cash Conversion Cycle. We break it into Days Sales Outstanding, Days Inventory Outstanding, and Days Payables Outstanding. At one company, we used a simple tool—the Cash Velocity Calculator—to show how inventory delays tied up $1.5 million. The lightbulb moment came when they saw financial impact in plain numbers. Within three weeks, they had reduced inventory and improved cash flow. The takeaway: teach operations, sales, and purchasing their role in cash usage. It turns everyone into part of the solution.

3. How did you manage working capital at a multinational level during your time at ConAgra?

At ConAgra Malt, we had operations in four countries with no central entity. We had to manage intercompany cash carefully. Each finance lead in Canada, the United Kingdom, Australia, and the United States joined a monthly call. We agreed that all intercompany transfers would happen on a fixed day. If a unit had a shortfall, we used credit lines to cover. This disciplined structure prevented foreign exchange surprises and made internal cash predictable. My advice: treat intercompany cash as seriously as third-party cash—it should never become an operational bottleneck.

4. Can you share a real example where you improved Days Sales Outstanding through customer collaboration?

One of our biggest customers—a dominant player in the beverage industry—kept pushing out payments. I requested a meeting with their Chief Financial Officer. We discussed our cost of capital versus theirs. They liked our product but realized we were financing their receivables. We agreed to shorten terms in exchange for a better price. The result? We halved our Days Sales Outstanding and preserved our margin. This kind of collaboration requires understanding your customer’s incentives—and having a product they truly value.

5. What advice do you have for usage-based pricing models facing unpredictable cash flow?

One solution is to work with the sales team to build in minimum commitments. A client I worked with introduced a fixed subscription fee plus overages. They used that base to model forecasts. Then, they monitored usage weekly. If there was a sudden drop, they called the customer to investigate. This mix of predictable base and real-time visibility improved their forecasting accuracy. Without this structure, variable billing creates major gaps in cash planning. Guardrails and constant monitoring are key.

6. How do you fix late customer payments when they ignore the payment terms in the contract?

Start by accepting reality. Many large customers will pay when they want. If they always pay on the 28th of the month, update your terms to reflect that instead of chasing payments. I have seen too many companies create exception reports and chase ghosts. Use technology to track actual payment behavior. Identify consistent delinquents and set escalation processes for them only. Do not let unclear processes between sales, billing, and collections drain your team’s energy. Align on clear terms that reflect how the customer operates.

7. What pitfalls have you seen in companies that collect large deposits upfront but still run into cash problems?

One of the key mistakes I've seen is companies relying too heavily on upfront deposits, which gives the illusion of a cash cushion. For example, at a wholesaler selling specialized products, they received upfront deposits for orders, which initially seemed like a solid financial cushion. However, over time, they didn’t manage their margins properly. They overlooked additional costs like freight, foreign exchange losses, and operational overhead. As a result, they were operating at a lower margin than expected. Despite the upfront deposits, the company's cash flow was strained. The lesson is: never rely solely on deposits to solve cash flow problems without fully understanding the underlying cost structure and ensuring deposits cover those costs.

8. What is your approach to building a capital plan as part of a long-term cash strategy?

Start with the business plan. Identify growth areas—new products, hiring, expansion. Then, build a capital plan around it. At CFO.University, we advise clients to project a future balance sheet and income statement based on that growth. From there, assess which parts can be funded with bank debt and which require equity. For example, hiring new teams may not be bank-financeable, but expanding a facility might be. Most importantly, understand this: growth consumes cash. If your sales and margins do not ramp in time, growth can break your business.

9. What role do vendors play in cash management strategy?

Vendors can be part of your financing model—if the relationship allows it. At one company, we negotiated extended payment terms with a key supplier in exchange for higher volumes. But we never relied on just one vendor. Diversification matters. Strategic vendor relationships should be formalized in contracts, not handshake deals. Always ensure vendors can deliver before you count on their timeline. Payment terms are only helpful if performance is consistent.

10. What risks have you seen in companies that rely heavily on subscription revenue that is not used?

I see this often in software. Companies sell annual subscriptions, but customers do not use the product. That creates tension and churn. I believe the future lies in a usage-based billing system. Bill when the customer uses the product, not just when the contract starts. But that requires a real-time billing engine and usage tracking. The technology must support it. Until then, companies can blend fixed fees with usage tiers to create balance. Do not assume subscription equals stability—customers expect alignment with value received.

11. How do you plan cash in businesses with long sales cycles and lumpy revenue?

First, match expenses to revenue. If you are selling software with a 6-month cycle, do not do front-load spending. In product-based businesses, only build inventory when you have confirmed sales. In services, do not hire until contracts are signed. Use working capital financing if your inventory and receivables are solid. But if your growth exceeds bank limits, equity or higher-cost debt may be necessary. Most importantly, monitor customer quality. If your customers are slow to pay or high risk, your cash plan will fail.

12. What final advice do you have for CFOs managing both growth and cash efficiency?

Never assume growth creates cash. Growth usually consumes it—via hiring, inventory, systems, and marketing. At Cargill, we built systems to model every cash impact of scaling sales. That helped us avoid surprises when investing in new markets. Forecasts are critical, but so is capital discipline. Align your hiring plan with margin visibility. Track cash by project. And above all, make sure every team—from engineering to sales—knows how they affect cash. That cross-functional literacy is what separates reactive finance teams from strategic ones.