Review, Understand, Use
Putting “Use” into Action
In earlier blogs we explored how Review and Understand create the foundation of the OptiFi Way.
The Use phase is where we turn insight into tangible actions that strengthen financial resilience, support growth, and sharpen operational discipline.
1. Cashflow
Effective cash management is one of the most immediate ways to apply insights. In the Use phase, this means:
Collecting aged debts: Using debtor data to prioritise overdue accounts, tighten follow-up processes, and reduce days outstanding.
Creating a cash buffer: Applying cashflow forecasting to set and maintain a minimum reserve that protects the business against shocks.
Providing for taxes: Using historic patterns and current profitability to set accurate tax provisions, ensuring there are no surprises at payment time.
These actions improve liquidity, reduce stress, and give business owners and leaders clearer visibility of working capital needs.
2. Bank Borrowings
Financial insights also inform how we manage debt strategically. This includes:
Debt reduction planning: Using cashflow and margin analysis to create a realistic, staged pathway for lowering debt and reducing interest costs.
Increasing borrowings to support investment: When the data shows strong future forecasts or growth opportunities, borrowings can be increased deliberately to fund expansion, capability uplift, or new products.
The Use phase ensures borrowing decisions are proactive, planned, and aligned with long-term strategy.
3. Capital Expenditure
The final component is using insights to inform asset investment. This means:
Planning for replacements: Reviewing asset age, performance, maintenance history, and operational risk to schedule timely replacements.
Budgeting for new assets: Using forecast demand, productivity metrics, and cost-benefit analysis to justify and prioritise new investment.
Aligning capex with strategy: Ensuring each asset purchase directly supports growth, efficiency, or customer value.
This disciplined approach prevents reactive spending and keeps the business equipped for the future.
Conclusion
The Use phase is where the OptiFi Way comes to life and delivers real impact. By acting on what we have reviewed and understood, we strengthen cashflow, make smarter borrowing decisions, and plan capital expenditure with confidence. It is practical improvement, embedded—turning knowledge into action and action into value.
About the People Behind OptiFi
We’re a team of senior finance professionals, CFOs, and business owners with extensive experience across commercial finance, governance, and small business.
Our passion is helping Kiwi businesses thrive — with clear reporting, practical insights, and tailored support.
