AMDAS can provide the in house service of financial analysis to determine the viability of a client’s proposed project, to calculate its profits and to ensure stable finances during the project. The financial analysis evaluates project liquidity and profitability. Liquidity is assured by cash flow analysis, while the profitability is evaluated by the following techniques:

  1. Payback period analysis

  2. Accounting rate of return

  3. Net present value

  4. Internal rate of return

A cash flow forecast is one of the most important parts of the financial analysis for a project. It represents a listing of the project cash inflows and outflows divided into time periods. Additionally to the cash flow forecast, throughout the project the cash flow budget may reflect the actual cash inflows and outflows, allowing us to monitor the accuracy of the projections. The main benefit of cash flow budgeting is that it quickly points out any liquidity problems in the future. It shows when the client would experience cash deficits and allows them to take corrective actions in advance by reducing the outflows, changing the time of certain transactions or borrowing the money. The cash flow budget can also identify the time periods when the client will have excess amounts of cash, allowing them to use this cash in order to create additional revenue.

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AMDAS Management Ltd