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This area of our practice involves review and analysis of the most
appropriate techniques and procedures for improving cash and working
capital management and efficiently utilizing company liquidity. The
results are increased operating efficiency, lower administrative
costs, reduced borrowing needs and improved investment performance.
Projects focus on one or more of the following areas:
- Local Cash Management - In-country cash
management in the US or any country where clients conduct business.
Treasury Alliance Group partners have direct working and consulting
experience in more than 42 countries.
- Global Liquidity Management - Management of
liquidity and risk on a global basis including the linkage of local
operations into pooling structures. We assess the benefits of
regional treasury centers, netting and re-invoicing arrangements and
evaluate options including intercompany lending, receivables
financing and outsourcing. We review available short term investment
and funding options based on analysis of country and regional
opportunities and each client's unique tax objectives and situation.
Our understanding of tax issues, bank capabilities, commercial,
regulatory and cultural considerations enables us to provide
practical recommendations.
- Bank Service Requirements - Determining which
existing or new bank partners - locally and globally - can best meet
corporate operating and credit needs. We utilize internet-based RFP
tools and our extensive knowledge of banking services and
capabilities to assist companies in evaluating and selecting the
best banking arrangements for their specific structural, geographic
and business requirements.
- Working Capital Management - Total Working
Capital is often defined as inventories plus accounts receivable
minus payables as reflected on the balance sheet at month end. The
carrying cost of this working capital is based the actual interest
that the company must pay in order to raise cash before inventories
are turned and receivables collected. TAG's perspective is based on
the treasury view of working capital; that the total cost of capital
employed relates to the time value of money. Our approach is to
drill down into the detail behind the month end balance sheet
figures. We review current working capital practices and metrics,
develop specific recommendations for improvement and prepare
cost/benefit analyses of their value.
Our consulting methodology combines on-site work, customized
web-based data collection, internal workshops and training. Our
projects are highly collaborative and we work closely with treasury,
tax, systems and business units globally to insure outstanding
results.
Please visit the Publications page to download our articles on cash and liquidity management. |
