P K Patel & Associates

Cash Flow Management

Cash-flow Visibility Architecture for Manufacturing

How we implemented cash-flow visibility architecture for a manufacturing client, reducing reporting latency from T+20 to T+1.

Business explainer: cash cycle.
By P K Patel & AssociatesPublished 8 min read
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Engagement at a glance

Industry
Manufacturing
Focus
Cash Flow Management
Systems and work involved
Microsoft Excel · Power Query (M Language) · Bank ODBC Feeds
On this page

The business context

A mid-sized manufacturing company was operating without real-time visibility into their cash position. The finance team prepared cash reports manually at month-end, often 15-20 days after the period closed. This created a blind spot during the month—decisions about vendor payments, capital expenditure, and short-term borrowing were made without current data.

The challenge

Reporting Latency

Financial reports were available only at T+20 days, making them historical rather than actionable.

No Forward View

Upcoming receivables and payables were tracked in silos, with no consolidated forecast.

Manual Reconciliation

Bank statements were reconciled manually against Tally entries, consuming 3-4 person-days monthly.

What we found

What we changed

Bank Feed Integration

Established ODBC connections to pull daily bank balances automatically into a master Excel workbook.

Categorized Tracker

Built a structured cash flow tracker with separate sheets for operating inflows, operating outflows, financing, and investing activities. Each entry tagged by vendor/customer and expected date.

Power Query Automation

Used M language scripts to refresh data from bank feeds and Tally exports with a single click. No manual copy-paste required.

Rolling 13-Week Forecast

Created a forward-looking view that projects cash position based on committed receivables, scheduled payables, and recurring expenses.

Implementation

  1. Week 1-2: Documented current data sources and mapped the flow of information.

  2. Week 3-4: Built the master workbook structure and established bank feed connections.

  3. Week 5-6: Trained the finance team on the refresh process and weekly review rhythm.

  4. Week 7-8: Conducted parallel runs to validate accuracy against manual reports.

Outcomes

AreaResult described in this case
Reporting LatencyReduced from T+20 to T+1 (next-day visibility)
Reconciliation TimeReduced from 3-4 days to 2-3 hours monthly
Forecast Accuracy85% accuracy on 4-week forward projections

The practical lesson

This material is general information. Apply it to your business only after checking the relevant facts, source documents and requirements.