Mastering Working Capital Management
Author: Rob Stephens
| CPE Credit: |
3 hours for CPAs |
Learn how to balance risk and reward across key working capital accounts, including cash, accounts receivable, inventory, accounts payable, and short-term debt. Gain insights into forecasting, monitoring, and assessing working capital balances to make informed financial decisions.
Explore the critical cash conversion cycle—the engine driving your business—and learn how optimizing Days Inventory Outstanding, Days Sales Outstanding, and Days Payable Outstanding accelerates cash flow and fuel growth.
Packed with practical examples, formulas, and actionable strategies, this course is ideal for CFOs, financial managers, business advisors, and anyone looking to enhance their financial management skills. Whether you're managing a startup or an established company, this course will equip you with the tools that can improve cash flow, reduce costs, and increase profitability.
Publication Date: May 2026
Topics Covered
- Cash: Minimize idle funds while ensuring readiness for operations and opportunities
- Accounts Receivable: Accelerate collections, optimize credit policies, and mitigate losses with effective strategies and detailed aging analysis
- Inventory: Balance stock levels to avoid costly excesses and devastating stockouts using Economic Order Quantity and Reorder Point models
- Accounts Payable: Master timely payments and leverage discounts to preserve cash
- Short-Term Investments: Learn to wisely deploy excess cash for higher yields while meticulously managing interest rate and liquidity risks
- Short-Term Debt: Explore the use of business lines of credit and other short-term funding options to maintain liquidity and reduce costs
Learning Objectives
- Identify working capital metrics
- Identify ways to improve working capital
- Recognize risks in working capital management
- Identify goals of working capital management
- Identify what permanent working capital refers to
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Business Management & Organization (3 hours)
Program Prerequisites
None
Advance Preparation
None
