Robust and sustainable management of cash and working capital can increase stakeholders’ confidence in a business. Improving cash flow in order to reduce debt, fund growth or provide a better return to stakeholders is key to any business, especially during periods of economic uncertainty.
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We support our clients with the following cash optimisation issues:
Our methodology and approach is adaptable for businesses at all scales and operating in all sectors – our approach is tailored to client-specific circumstances.
Our clients have increasing amounts of financial and operational data at their disposal. Many, however, experience practical challenges securely processing, interpreting and gaining meaningful insight from it.
KPMG has developed a suite of market-leading analysis and visualisation tools that securely analyse your data and can drive valuable and unexpected conclusions.
Our approach is comprehensive and effective.
Cash forecasting visibility, and control over preservation and generation levers, has never been as important. Since COVID, we have worked hard to help clients build or restore faith in the processes and tools they have to manage cash flow tightly.
Working capital is increasingly a top three priority for businesses; leading practitioners are consistently applying a cash lens to support complex transformation and growth programmes which provides the opportunity to self-fund change.
We believe there are typically cash opportunities of between 1-15% of gross working capital value in most businesses and the benefits of realising this can be far reaching.
As outlined above, our working capital capabilities form a component part of a wider cash and liquidity management framework that has been established for well over a decade now.
Our approach to working capital typically involves a rapid diagnostic followed by implementation, with ‘quick wins’ fast tracked and longer-term initiatives planned and actioned on a sustainable basis, working collaboratively with Management.
KPMG’s leading working capital diagnostic methodology utilises proprietary data analytics visualisation tools. Drawing from multiple, standard, ERP data outputs our software is able to quickly analyse and prioritise working capital enhancement opportunities.
Cash management is critical for stressed and distressed companies that have limited choices and need to preserve cash to buy time to restructure and/or refinance. Our crisis cash work allows longer-term solutions, such as refinancing or CVAs, to be developed and enacted.
Once we have established the business position, we can start stabilising and addressing a critical liquidity outage by:
Our team can support across a range of crisis cash situations, including when organisations are: