Working Capital That Actually Works
Most businesses track revenue and expenses. But the gap between them? That's where things get interesting. And complicated. We focus on understanding what's happening in that space.
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When the Numbers Don't Tell You Enough
You've got a profit on paper, but the bank account looks different. Receivables are piling up, or inventory's tying up funds you need elsewhere. It's a common pattern we see with growing businesses across Queensland. The challenge isn't usually about making sales — it's about the timing of money moving through your operation.
Looking Beyond Standard Reports
Balance sheets and P&L statements are useful. They're just not built to show you where cash gets stuck in your business cycle. We map out how money moves from suppliers through to customer payments, identifying where delays happen and what that costs you. Sometimes it's payment terms that need adjusting. Other times it's about inventory turnover or collection processes.
Patterns That Impact Daily Operations
A manufacturing client we worked with last year had healthy margins but constantly struggled with supplier payments. The issue wasn't profitability — their cash conversion cycle was running 87 days while their payment terms were 30. We restructured their working capital approach, and within four months they'd reduced that cycle to 52 days. Not revolutionary, just methodical analysis applied consistently.
How We Approach Analysis
There's no single formula that works for every business, but the process of understanding working capital follows a logical sequence.
Current State Mapping
We examine your existing cash conversion cycle, payment terms, inventory turnover, and receivables patterns. This establishes baseline metrics specific to your operation.
Constraint Identification
Every business has bottlenecks where cash gets delayed. We identify which constraints have the biggest impact on your working capital availability.
Scenario Modeling
Before changing anything, we model different approaches to see potential outcomes. This helps prioritize which adjustments might deliver meaningful improvement.
Working With Practical Context
I'm Jasper Kowalski, and I've spent the last twelve years analyzing working capital for businesses ranging from retail operations to construction companies. Started in corporate treasury management before moving into consulting work focused specifically on cash flow optimization.
What I've learned is that textbook solutions rarely fit real business situations. A retailer's working capital challenges look completely different from a service company's, and seasonal businesses have their own distinct patterns. The analysis needs to account for industry-specific realities and operational constraints you're actually dealing with.
My approach centers on understanding what's genuinely feasible for your business, then building recommendations around that. No point suggesting changes that require systems you don't have or processes that don't fit how you operate.
What Analysis Typically Covers
Each engagement varies based on specific needs, but these areas consistently provide useful insights for Australian businesses managing working capital.
Cash Conversion Efficiency
Measuring how long it takes to convert inventory and receivables into available cash, identifying where delays occur, and quantifying the cost of those delays to your operation.
Payment Term Optimization
Analyzing the relationship between your payables and receivables terms to identify opportunities for improving cash availability without straining supplier or customer relationships.
Inventory Impact Assessment
Evaluating how inventory levels and turnover rates affect working capital availability, particularly for businesses with significant stock holdings or seasonal fluctuations.
Receivables Management
Examining collection processes, customer payment patterns, and credit policies to reduce the time between invoicing and payment receipt.
Want to Understand Your Working Capital Better?
We're based in Surfers Paradise and work with businesses throughout Queensland. Initial consultations typically run 60-90 minutes and focus on understanding your specific situation before discussing whether further analysis makes sense.