Finance and Accountancy Briefing

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2013 Working Capital Overview


Every day, in the media, we see a series of discouraging figures. Many companies are suffering from the current economic situation. Access to funding, tensions regarding margins and continuous expectations regarding cash have all combined to make the issue of working capital increasingly topical. Although a great deal has been achieved, particularly by various international groups, there is still more to be done to manage operational working capital and to ensure cross-disciplinary collaboration and continued performance.
There are reasons to be thankful. Some companies are having less difficulty. Finance departments, looking for new ways of creating value, have embraced change. They have managed to turn working capital optimisation into a profitable governance solution. The cash involved accounts for 10-15% of annual turnover. Their working capital, and, in particular, their accounts receivable, represent a powerful lever for cash generation for companies.

Sidetrade is in a good position to observe the ways that companies manage their financial relationships with customers. In 2012, client companies using Sidetrade's Cloud managed 31 million invoices - representing the same number of payment experiences - worth a total of £71 billion in business-to-business flows. Sidetrade, therefore, has an extensive wealth of material with which to analyse the key factors for success in managing a company's primary asset, its accounts receivable.

This new edition of the Working Capital Overview provides a review of the management of accounts receivable at a time of volatility and radical change. It looks at the performance achieved by European companies in recent years and analyses the best strategies and new trends.


Tags: Strategy, Working capital, Performance management.

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