Treasury eBook: Optimizing Working Capital and Cash Management

Companies operating in today’s diverse global environments face unprecedented challenges with regard to managing capital assets, working capital and especially cash accounts that are distributed throughout multiple operating entities in different countries. These challenges are exacerbated within companies that have grown via merger and acquisition (M&A) strategies, which often results in trying to manage cash accounts across a variety of legacy financial systems.

Working capital is the lifeblood of most organizations and, as such, it needs to be watched closely and managed in a comprehensive, real-time, and proactive manner. Most CFOs use working capital as a key indicator of the operating health of the business. They focus on questions such as: Are we collecting our bills in a timely manner? Are we taking all the discounts that we are entitled to? Are we carrying too much inventory in our warehouses?

These basic metrics all have a direct impact on liquidity. However, the answers to these key working capital questions are inherently dynamic and constantly changing. In this ebook, we take a closer look at these key elements and identify some of the key issues facing the Office of the CFO, treasury executives and finance staff with regard to optimizing use of capital assets.

It can be achieved with comprehensive solutions, such as SAP Cash Management, that provide an agile and flexible solution to bring all of the disparate pieces together into a single highly manageable picture to explore more details;