Toptal

Executive Summary Working capital management is an intrinsic part of the CFO job description. Working capital management refers to a company’s strategy related to monitoring and utilizing the two components of working capital—current assets and current liabilities—to ensure the most financially efficient operation of the company. The primary purpose of working capital optimization is to make sure the company always maintains sufficient cash flow to meet its short-term operating costs and short-term debt obligations. It is often one of the cheapest way to obtain cash for a company and adds value to all stakeholders, including shareholders, and should therefore be considered of strategic importance for the entire company, not just the finance function. Accounts receivable management requires a concerted action plan by multiple teams. Make the finance team take ownership of clients and responsibility for decreasing outstanding accounts receivable, ideally tying a part of their compensation to

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