CASH FLOW & WORKING CAPITAL MANAGEMENT
Cash Flow and Working Capital Management are essential for maintaining a business’s financial health and operational efficiency.
Cash flow management focuses on tracking and optimising the inflow and outflow of cash to ensure the company has sufficient liquidity to cover day-to-day expenses, repay debt, and invest in growth opportunities.
Working capital management involves optimising current assets and liabilities—like inventory, accounts receivable, and accounts payable—to maintain smooth operations without over-relying on external financing.
Together, these practices help prevent cash shortages, improve profitability, and allow businesses to remain agile in responding to unexpected challenges or opportunities. Effective cash flow and working capital management ultimately support sustainable growth by ensuring that resources are available when needed and that financial resources are used efficiently.
KEY POINTS
Cash Flow Forecasting: Analysing expected cash inflows and outflows to maintain healthy liquidity levels, helping businesses meet obligations without over-borrowing.
Working Capital Optimisation: Balancing receivables, payables, and inventory levels to improve cash flow and reduce the need for external financing.
Debt and Credit Management: Creating strategies to manage existing debt efficiently, potentially restructuring or refinancing to minimise costs and maintain a strong credit profile.
