Financial Operations Hub

Working capital management is managing the cash conversion cycle (CCC) from inventory purchases to the collection of accounts receivable to paying vendors’ accounts payable balances, employee payroll, other accrued liabilities, and short-term debt obligations on a timely basis with adequate financial resources for liquidity. 

Your first step to ensuring healthy business growth is understanding the difference between cash flow and profit and the purpose each serves. This helps manage day-to-day operational processes and informs small business owners on proper cash flow management.

GDPR is a strict EU data privacy law, with penalties, that requires compliance to protect personal data processed by companies in non-EU locations that do business with European Union Member States residents. Financial services companies, including financial institutions, and payment service providers (PSPs), must also comply with GDPR. GDPR is General Data Protection Regulation.

Spend analysis is the repetitive process of grouping and reviewing procurement data and processes, vendors in the supply chain, and purchases by category to find cost reduction and operational improvement. Spend analysis improves strategic sourcing, vendor selection, supplier management, contract pricing, payment terms, spend management, financial results, and cash flow.

Operational efficiency is the ratio of a company’s input and output, which determines a system’s overall performance. It’s a measure of how much costs are incurred during a financial activity. In this sense, lower costs equate to greater efficiency.

The strategic sourcing process enables a business to assign value to sourcing decisions by building a diverse supply base. It’s about not putting all your eggs in one basket, as they say, and keeping your options open. Strategic sourcing is a collaborative process that improves efficiency and streamlines operations.