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Working-Capital Review

Examine how customer collections, stock and supplier commitments affect cash timing, with an agreed focus on the decisions your business needs to make.

When this may be useful

  • Sales and accounting profit do not explain the cash pressure you experience.
  • Customer balances or stock absorb cash for longer than expected.
  • You need a short-term cash outlook and a clearer list of actions.

Questions the work can address

  • Where is cash tied up and which balances are disputed or uncertain?
  • How realistic are collection dates and planned payments?
  • What minimum cash buffer is needed?
  • What actions are within management's control, and what requires negotiation?

Information usually needed after scope is agreed

  • Available opening cash and separately identified funding arrangements
  • Receivables ageing with its basis, disputes, unallocated receipts and collection expectations
  • Stock information, supplier balances and agreed payment commitments
  • Payroll, taxes, debt service and other expected cash movements for the agreed forecast period

Possible deliverables, subject to agreed scope

  • A review of agreed receivable, inventory and payable balances and information gaps
  • A short-term cash forecast with opening balances, rolling balances and funding assumptions
  • Scenarios showing the timing effect of selected collection, stock or payment changes
  • A prioritised management action list with responsibilities and follow-up points

What this outline does not include

  • A forecast is conditional on assumptions; it is not a guarantee of liquidity, collection or borrowing approval.
  • The review is not debt collection, loan sanction or a commitment from suppliers or lenders.
  • Tax, legal, valuation and assurance work is included only where separately agreed and appropriate.

How the work starts

  1. Describe the decision, business context and deadline.
  2. Discuss available records and agree the work, responsibilities, deliverables, fees and timing.
  3. Exchange necessary records using the agreed method and review findings against the agreed scope.
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Open the concise, printable practice brief →

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Discuss this requirement

No confidential documents are needed for an initial enquiry. Acceptance, scope, fees and timing are agreed separately.

Boovaraghavan & Co. · Cost Accountants · FRN 007425. These resources explain possible work and preparation. They are not a quotation, assurance report or commitment to an outcome. Suitable remote assignments and any necessary site visits are discussed individually.