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Why High-Performing FP&A Teams Obsess Over Working Capital

Discover why top FP&A teams prioritize working capital as a key driver of business success. This PPT highlights the importance of managing accounts receivable, accounts payable, and inventory to improve cash flow, operational efficiency, and investor confidence. Learn how leveraging technology and strategic financial services like virtual CFO services in India and outsourced CFO services Mumbai can optimize your working capital management and fuel sustainable growth.

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Why High-Performing FP&A Teams Obsess Over Working Capital

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  1. Why High-Performing FP&A Teams Obsess Over Working Capital Created by Contetra Pvt Ltd

  2. What is Working Capital & Why It Matters? • Represents the difference between current assets and liabilities. • Fuels day-to-day operations, payroll, and orders. • Indicator of liquidity and operational efficiency. • Poor working capital management damages profitability and trust.

  3. The Shift: Metric to Strategy • No longer just a number on the balance sheet. • Used as a lever in forecasting, debt optimization, and strategic planning. • Tracked in real-time, not just quarterly or monthly.

  4. The Working Capital Trinity • Accounts Receivable (AR): How quickly you collect cash. • Accounts Payable (AP): How you manage vendor payments. • Inventory: Alignment of stock with sales velocity, minimizing obsolete SKUs.

  5. Benefits of Working Capital Obsession • Enhanced cash flow forecasting and operational agility. • Stronger cross-functional accountability (sales, procurement, logistics). • Improved operational efficiency via targeted interventions. • Greater investor confidence and company valuation.

  6. Common Pitfalls to Avoid • Focusing only on AR without optimizing AP and inventory. • Ignoring seasonality in cash needs. • Chasing metrics in isolation without business context.

  7. Leveraging Technology & Dashboards • Real-time data and dashboards (DSO, DPO, inventory turnover). • Integrated ERP and FP&A tools. • Scenario modeling for strategic decisions.

  8. Final Word: Make Working Capital Strategic • Actionable starting points: Track, collaborate, and model scenarios. • For scalability, consider ‘virtual CFO services in India’ for expert guidance. • Don’t let cash leak through inefficiency, strategize for business survival.

  9. Bonus: Outsourcing for Working Capital Excellence • ‘Outsourced CFO services Mumbai’ can set up efficient dashboards and analytics. • Leverage external expertise for cost-effective financial discipline and sustainable growth.

  10. Thank You +91 98338 18857 growth@contetra.com https://contetra.com/strategic-business-financial-management-solutions/

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