Liquidity Management

Cash Flow & Working Capital Management

Proactive cash flow forecasting and working capital optimisation — preventing liquidity crises before they happen.

What This Covers

Cash Flow & Working Capital Management

More businesses fail from cash flow problems than from unprofitability. CA Jatin Karda & Co. implements structured cash flow monitoring and working capital management — from 13-week forecasts to debtor/creditor cycle analysis and working capital limit optimisation.

  • 13-week rolling cash flow forecast
  • Debtor (accounts receivable) ageing and collection improvement
  • Creditor (accounts payable) cycle optimisation
  • Inventory holding analysis and reduction advisory
  • Working capital limit utilisation and banking compliance (QIS/Stock statements)
  • Cash conversion cycle (CCC) measurement and improvement
How It Works
01
Cash Flow Baseline
Current cash position, receivables, payables, and inventory mapped. Cash conversion cycle calculated.
02
13-Week Forecast Build
Weekly cash inflows and outflows projected for the next 13 weeks — identifying potential shortfalls.
03
Working Capital Analysis
Debtor ageing, creditor terms, and inventory levels analysed. Problem areas identified.
04
Improvement Actions
Specific actions recommended — payment follow-up, early payment discounts, banking limit utilisation.
05
Monthly Monitoring
Cash position monitored weekly. 13-week forecast updated monthly. Alerts issued if liquidity risk identified.
What You Receive
13-Week Cash Flow Forecast
Cash Conversion Cycle Analysis
Debtor Ageing Report
Creditor Terms Review
Working Capital Improvement Plan
Monthly Cash Dashboard
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Ideal For

Who Needs This Service?

Cash flow management is critical for any business with significant receivables, inventory, or seasonal revenue patterns.

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Manufacturers & Traders

High inventory and debtor exposure — working capital cycle optimisation is business-critical.

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Project-Based Businesses

Milestone-based billing and irregular cash flows require careful forecasting.

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Growing Businesses

Rapid growth often causes cash crunches — receivables grow faster than collections.

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Loan Covenant Compliance

Businesses with working capital limits must submit QIS/stock statements — we manage this entirely.

Common Questions

Frequently Asked Questions

CCC = Debtor Days + Inventory Days − Creditor Days. Measures how many days to convert inventory investment into cash. Lower CCC = better working capital efficiency.

Projects weekly cash inflows and outflows for one quarter — identifying cash shortfalls 1–13 weeks in advance so action can be taken before a crisis.

Key interventions: clear payment terms, automated reminders at 7/14/30 days, early payment discounts, escalation protocols, and invoice discounting/factoring to accelerate collections.

Quarterly Information System report submitted to banks by businesses with working capital limits above ₹5 crore — showing actual vs estimated sales, current assets, liabilities, and bank borrowing.

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