Insights: Cash Flow

Dear Business Partners,

Cash flow planning is a key component of financial management and can be even more important than profit planning in the countries of Eastern Europe, Central Asia and the Caucasus. Higher financing costs and local tax and payment practices can create temporary liquidity constraints, making sufficient funding from headquarters essential.

For example, import VAT often has to be paid before it can be recovered, and advance payments may require upfront VAT settlements. Companies should therefore regularly reconcile accounting profits with actual cash flow developments to support effective financial planning and liquidity management.

If you need any assistance with cash flow planning and other aspects of financial analysis, SCHNEIDER GROUP is ready to support you.