Cash and Working Capital Management

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.

  • 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 working capital management.