Cash and Working Capital Management

The more a business grows, the greater its cash-cycle complexity. Optimising working capital and cash flow is one of the most effective and simple ways of increasing profit in an organisation.


Poorly managed cash flow and working capital create either a significant opportunity cost for an organisation or alternatively an unnecessary expense in circumstances where short term debt funding is required. Well managed working capital ensures an appropriate level of debt leverage to optimise return to equity without exposing the organisation to unreasonable levels of risk.


Can you comprehensively answer all the following questions about your business?


  • Is your top line revenue growth converting into cash growth?
  • What is your cash position today, and what is your forecast for tomorrow? Next week? Next month?
  • Do you use a short-term cash flow forecast as the basis for making daily decisions about your business? Why?
  • Do you have clear policies and set procedures for your key business processes (e.g. invoicing to debtor collection, purchasing to creditor payment)? Are your key processes the most effective options available? Are they followed by your team?
  • What are the key risks to your short-term cash flow performance? How will you address those quickly if adverse performance was to eventuate?
  • Do you have the right banking products for your business?
  • Can movements in your weekly (or daily) short-term cash flow forecast be reconciled to the cash flow forecast from your business plan?


Speak to us to help you arrive at the most effective solutions for your business.