How to Optimize Cash Flow in all Market Conditions with Brad Silicani of Anrok
Mar 24, 2022
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Brad Silicani, Head of Fi at Anrok, discusses the challenges of cash optimization in different market conditions and the relationship between tax and cash optimization. They also cover topics such as cash flow optimization for VC backed startups, the role of treasury in startups, balancing risk and cash flow optimization, and building non-transactional relationships in finance.
Staying focused on preserving capital while investing in building the product is crucial for business success.
Cash flow optimization can be influenced by tax strategies and effective management of credit terms and sales tax.
Deep dives
Importance of Preserving Capital
The speaker emphasizes the importance of staying focused on preserving capital and making a little bit of return while allowing the business to place big bets on building their product and achieving success.
Cash Management Strategies
The podcast explores cash management strategies for businesses at different stages. For early-stage VC-backed startups, the recommendation is to invest in low-risk government-type securities to generate some return on cash. As businesses grow, they can consider separately managed accounts with external investment advisors to earn higher yields. It is also important to maintain visibility into cash flow and integrate banking relationships to get a consolidated view of cash.
The Role of Tax in Cash Optimization
The podcast touches on the relationship between tax and treasury and how optimizing cash flow can be influenced by tax strategies. Managing cash flow effectively, including optimizing credit terms and monitoring sales tax, can help improve interest income and overall cash flow.
Developing Relationships and Communication
The speaker highlights the importance of developing relationships and effective communication skills as a finance professional. Building non-transactional relationships with colleagues from different departments allows for better understanding of their needs and priorities, facilitating stronger collaboration and problem-solving when unexpected challenges arise.
In every business, the goal is to protect cash and to build a product to get to market. And big companies, which earn tons of revenue, are successful at cash optimization.
But there is so much pressure in the economy — interest rate movement, inflation, rising prices — that needs to be overcome. And that could be difficult for companies that do not make a profit and do not have the money to invest.
In this episode of The Role Forward, our host Joe Michalowski welcomes Brad Silicani, the Head of Finance and Operations at Anrok. They get into the state of the economy and cash management, how to kick your cash in the right direction to get to market, and the relationship between tax and cash optimization.
Guest-at-a-Glance Name: Brad Silicani What he does: He is the Head of Finance and Operations at Anrok. Company: Anrok Noteworthy: Brad spent the first part of his career with Ernst and Young. After about four or five years, he moved to Dropbox in an accounting role and spent almost ten years in various roles such as Corporate Controller, Head of Tax, and Treasurer. Finally, about a year ago, he joined Anrok as the Head of Finance and Operations. Where to find Brad: LinkedIn
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