Cash and Working Capital

Cash is the lifeline of all businesses. But in a complex business environment, it can be challenging to build a resilient cash flow and develop a platform for growth.

Identifying opportunities to release cash flow from working capital, and understanding how to unlock that value, can bring countless benefits, from greater operational flexibility, to reduced finance costs or more potential for investment.

Jenny Shutt

Partner

KPMG in the UK

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How KPMG can help

Our Cash and Working Capital specialists can help to strengthen the cash position in the deal environment, involving tight timeframes, technical complexity and rapid decision-making, as well as during financial distress when uncertainty and pressure are high.

We look at people, processes, systems and culture to find and unlock cash and working capital value. With a hypothesis-driven approach which combines data intensive analytics with targeted discussions, we seek value across the full breadth of a business, including Order to Cash, Forecast to Fulfil and Purchase to Pay working capital cycles.

Our services include:

Cash flow forecasting

Reviewing short term cash flow forecasts to understand data inputs, assess accuracy and support more informed decision making

Working capital diagnostics

Analysing and diagnosing opportunities across the end-to-end working capital cycle
Quantifying cash flow opportunities, providing empirical evidence to facilitate sustainable change
Modelling process changes to identify the cash impact

Payment term benchmarking

Reviewing customer and supplier payment terms against relevant industry or geographic benchmarks
Supporting organisations to build a payment term strategy
Recommendations underpinned by our expert knowledge of payment term legislation and regulations on a global scale

Accounts receivable (including unbilled) optimisation

Redesigning processes to generate cash release, using our Order to Cash (OTC) methodology
Assessing unbilled receivables and driving management and operations to speed up WIP billing
Performing rapid customer segmentation to prioritise and strategise collections within finance functions

Accounts payable optimisation

Redesigning processes to generate cash release, using our Procure to Pay (PTP) methodology
Implementing standardised payment term models
Building trade-off tools to understand cost/cash considerations
Upskilling teams to lead in supplier negotiations
Supporting businesses to navigate payment practice and performance reporting while optimising overall cash flow

Inventory optimisation

Optimising inventory levels, including finished goods, WIP and raw materials, using our Forecast to Fulfil (FTF) methodology
Reviewing sales forecasts, minimum order quantities (MOQs) and lead times to optimise safety and cycle stocks while maintaining customer service
Optimisation advice underpinned by best-in-class principles