As the festive season approaches and the cash registers commence their merry ringing, how do companies optimise their working capital? According to the latest 2014 Finance Priorities Survey by Protiviti, managing cash flow and working capital efficiently and effectively is key.
Working capital management involves managing inventories, accounts receivables and payables. Improved working capital management can help strengthen a company’s financials and help grow its business. A Hackett Group study has shown that through effective working capital management, top performing organisations are able to free up US$2.9 billion more in working capital than the typical Global 1000 organisation.