Necessity Of Innovative Strategies For Efficient Working Capital Management

In a fast changing environment of rapidly shifting geopolitical situations, frequent regulatory changes, technological innovations and above everything else a volatile market had made it really difficult for treasury professionals to identify areas they should be focusing upon. The initiatives those should be taken for long term value creation as cash and liquidity management has become the most important theme for multinational corporations in recent years – new cash management strategies have become the actual requirement of the day. Cash management or working capital management can now hardly be considered as some simple administrative activity and for modern day professionals it is being recognized as an essential treasury function to be conducted on an everyday basis, with a focus on long term growth on company investment.

For creating long term value and increase cash flow navigating the complexities of a highly demanding global market has become extremely essential and corporations of all sizes are now feeling the need of creative cash and liquidity management strategies. They need to do this for supporting the strategic development of the organization and also for complying with the different regulations of various countries across which they operate. Irrespective of the nature of the business, treasurers from all over the world are looking for innovative cash flow management so that they can make the most out of evolving opportunities. Treasurers, especially in the Eurozone are also anticipating RMB liberalization for securing and accelerating international payments and also for automating the reconciliation process.

Senior cash flow management professionals are increasingly understanding and recognizing the value of new and efficient liquidity management systems those will ultimately lead to higher demands on the treasury. Presently treasurers focus on working closely with the banks and financers within their business for centralizing and balancing the cash flow, standardizing operational processes, for improvement of working capital metrics and for enhancing counterparty risk management too. In simpler terms modern day liquidity and cash management strategies are being increasingly recognized as an essential factor for creating sustainable value which will in turn transform into corporate investment and increase market share. Innovative cash management has now become something more valuable than ever and has gone from strength to strength attracting some of the world’s most respected treasurers.

It is true that that a working capital management system has been under discussion for quite some time but it is only in recent years that it has turned into an issue of senior management focus and as per a number of recently conducted surveys, if effective practices are adopted, a huge amount of working capital could be released globally. Experts also consider that even small behavioral changes can result in substantial amount of material impact on the business. So any activity that can have an impact on working capital is now being scrutinized by the treasurers and finance managers and companies are also continuing reviewing their receivable practices for reducing DSO and increasing predictability of cash flow. For more in-depth information you can visit

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Tony Rogers is an expert in modern computing and related services who likes to write many interesting articles and blogs, helping people to understand the nuances of the industry. He recommends as the best name to trust for the most reliable cloud computing services.