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Cash Flow Optimization

This strategy focuses on maximizing the inflow of cash while efficiently managing outflows to maintain a healthy liquidity position. It involves analyzing and improving various aspects of the business, such as accelerating receivables, managing payables and controlling expenses. Optimizing cash flow ensures that a company has sufficient funds to meet its obligations, invest in growth opportunities and sustain operations during economic fluctuations.

Related terms

3 Way Match
3-way matching refers to a three-step process of matching three key documents before processing a payment to a supplier.
30-Day and 13-Week Operating Cash Burn
30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit. 
ASC 606
Accounting Standards Codification (ASC) 606 is a standard framework for revenue recognition developed by the Financial Accounting Standards Board (FASB) for companies operating within the United States.
Account Reconciliation
Account reconciliation is the process of comparing two sets of records to ensure their accuracy and consistency.
Accounts Payable
Accounts payable (AP) refers to the amount of money that a business owes to its suppliers or creditors for goods or services purchased on credit.
Accounts Payable Automation
Accounts payable automation (AP Automation) refers to the use of technology and software solutions to streamline and optimize the accounts payable process within an organization.