Working capital has traditionally been managed on a siloed, component-by-component basis. Solutions to improve efficiency were often designed to address a single component of working capital. That approach leaves accounts receivable, accounts payable and inventory optimized locally, not across all three, nor across currencies, nor across global operations. Cash is king is managing working capital. Using spreadsheets to track balances and transactions across multiple accounts won’t give you the real-time cash visibility you need. Advances in cloud based ERP and corporate performance management solutions (CPM) are offering companies of all sizes 20/20 vision in terms of cash visibility including cash balances, cash inflows, and cash outflows. Understanding the how and why of all cash movements removes the fog that hides inefficiencies in working capital management. Discover how raising your company’s cash IQ is the key to effective working capital management.

1. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Raising Your Cash Management
IQ to Optimize Working Capital

2. Learning Objectives
After attending this event you will be able to:
• Improve your company’s understanding of the impacts that
the “hows and whys” of cash flows have on your company’s
bottom line
• Identify inefficiencies in your company’s current working
capital management strategy
• Develop and deliver a quality working capital management
strategic plan to company leaders
• Identify the benefits to your company in improving the visibility
of cash balances, cash inflows and cash outflows

3. Welcome to Proformative
Proformative is the leading educational resource for corporate finance
professionals.
Announcing the new Proformative Academy:
• On demand video courses taught by peers and SMEs
• Over 150 finance and accounting courses and growing rapidly
• CPE for CPAs, CMAs, CTPs, and CIAs
Check it out at www.ProformativeAcademy.com

4. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Raising Your Cash Management
IQ to Optimize Working Capital
Ernie Humphrey, Educational
Programs Leader, Proformative

5. OUR AGENDA
Working Capital Overview
Elevating your Cash IQ: The Key to Working Capital Management
Cash Management Case Study: Establishing Visibility and Control
Creating & Executing a Working Capital Battle Plan
The ABCs of Success
Closing Thoughts & Resources

6. WORKING CAPITAL (WC): DEFINITION
FOR THE PURPOSES OF THIS COURSE:
Working Capital =
Current Assets – Current Liabilities
Current Assets- cash, accounts
receivable (AR), short-term
investments, inventory
Current Liabilities- accounts payable
(AP), short-term notes payable

7. WORKING CAPITAL MGMT: INHERENT HURDLES
Common Inherent Barriers to Optimizing Working Capital:
Key working capital components are managed in silos
There is a lack of visibility into real-time working capital
component values (cash, AR, AP)and the dynamics of
working capital movements
(payments, receipts, etc.)
Information relative to working capital is housed in
disparate systems, often in different locations, and
sometimes in different countries
Company leaders do not view working capital management
as strategic
Company leaders do not understand the hard dollar cost of
ineffective working capital management

8. IDENTIFYING COMPONENT OPPORTUNITIES
It all starts with visibility. Consider the visibility of
working capital components starting with cash
Identify areas for which your department currently has
control
Identify areas that your department may
influence, but not control
Identify areas that your department does not currently
influence.

9. WORKING CAPITAL: COMPONENT TARETING
Cash is King: Elevating your Cash IQ
Understand where cash is coming
and going
Why it is coming and/or going there
How it is coming and/or getting
there
How long it takes come places
and/or get there
Who controls cash movements &
why

10. WORKING CAPITAL: COMPONENT TARETING
Cash is King:
Review and map existing internal processes for all
movements of cash
Cash Out
Accounts Payable
Checks, Wires, ACH
Tax & Dividend Payments
Inter-Company Payments
Investments
Short Term
Cash-In
Accounts Receivable
Checks, Wires, Inter-Company Payments

11. CASH VISIBILITY & CONTROL: A CASE STUDY
Indianapolis, IN
Treasury Center
United States
Canada
Netherlands
China
Australia
Mexico
Japan
Taiwan
Germany
Treasury Center
Germany Italy
Czech
Republic
South
Africa

12. Raising Your Cash Management IQ to Optimize
Working Capital
Thank you for your interest in this presentation.
View the on-demand webinar or download the full
presentation at:
www.Proformative.com