Why Optimize your Cash Conversion Cycle? – December 6th 2023 4-5pm GMT

While all companies seek more profitability, few companies seek “more” risk. In addition all companies need to maintain a certain level of liquidity even without the benefit of dedicated resources (i.e. a treasury function).

Unfortunately, most economists are forecasting 2024 to be a year of uncertainty; some are forecasting a recession in the first half of 2024.

Persistent rates of inflation, uncertainty among consumers and uncertainty around access to bank credit (i.e. tighter standards and higher spreads) will complicate any company’s ability to manage its profitability, liquidity and risk and answer the question “Is my company over borrowed, under-invested or over exposed to the market?”

To reduce levels of risk and maintain liquidity which can be caused by exogenous factors, companies may wish to look internally to more controllable actions such as:

  • Faster cycle times – Move from accounting time to market time by addressing work and information “flows” (move to new processes and systems?)
  • Utilize more digital payments, both inbound and outbound, reducing internal and bank costs as well as fraud.
  • Evaluate labor vs fintech trade-offs to gain internal productivity, especially if labor markets remains tight.
  • Proactively manage the entire working capital timeline to reduce idle cash and net interest expense. (i.e. one company’s AR is another’s AP)

During this 1 hour webinar speakers from Cashbook will focus on the cash conversion cycle (CCC) and how faster cycle times and predictive analytics could be used to reduce a company’s dependence on external and uncontrollable forces..

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