Working Capital Optimization

Working capital is a prime indicator of a company’s financial health. Positive working capital enables businesses to meet current and long-term financial obligations. Without it, companies must rely on lines of credit and other short-term borrowing, which further increase the already high cost of doing business.

Working Capital Optimization Services is a project-based offering that helps clients improve overall financial performance and profitability by improving working capital from both internal and external sources.

We use a multi-faceted approach that provides analysis and evaluation for working capital sources. While the approach can be customized to a company's particular needs, our process will usually encompass the following:

• Balance sheet review
• Analysis and collection of past due accounts receivable
• Audit of customer payment habits to identify trends and opportunities for automating the collection and cash application processes
• Analysis of key vendor contracts for pricing disparities and payment terms
• Evaluation of accounts payable payment practices
• Evaluation of purchasing policies and practices
• Analysis of sales and use taxes paid or assessed
• Analysis of fixed assets and construction-in-progress accounting for uncapitalized, non-depreciating fixed assets
• Review of fees paid on credit card payments received from customers
• Review of other areas unique to the specific business