Addressing cash management challenges

Levers to manage cash needs during COVID-19

Ron Walker

Ron Walker

Finance Transformation Service Network Lead, KPMG US

+1 858-750-7057

Sanjay Sehgal

Sanjay Sehgal

Head of Markets, Advisory, KPMG US

+1 216-875-8113

Ralph Canter

Ralph Canter

Managing Director, Finance Transformation, KPMG US


COVID-19 has reinforced the importance of cash, as many organizations are dealing with cash flow disruption. Some organizations have seen demand slow as social distancing and government mandates have had significant impact on their industries. Others have sent nonessential employees home and no longer have people in place to process receivables or payables.

It will take smart, decisive action on the part of CFOs and their partners in the business to ensure their organizations can manage their cash needs during COVID-19. Explore the key first steps in responding to this challenge.

Addressing cash management challenges
Levers to manage cash needs during COVID-19 and 6 questions for CFOs
Cash and working capital framework
Assess your capability to put cash at the center of your decisions
Understand where you are
4 key drivers of sources and uses of cash


Boost visibility

CFOs must quickly determine whether their organizations have adequate visibility into their cash positions, determine their cash needs, and address any shortfalls.


Put cash at the heart of decision-making

Designate “cash champions” to infuse cash thinking into every spending decision or create a cash desk through which all cash expenditures must be vetted.


Free cash from working capital

Take advantage of vendors who offer longer payment terms and stay close to customers about anticipated revisions to their payment schedules.

Six key questions for CFOs to ask

1. Are our cash KPIs capable of providing the information we need?

2. Is our cash reporting capable of providing the insight we need at the right level of detail and speed?

3. What are our short-, medium-, and long-term cash needs (and opportunities)?

4. Have we designated cash champions to infuse cash thinking into every spending decision?

5. What projects, purchases, or activities should be shut down to preserve cash?

6. How quickly can we begin to employ robotic process automation and cloud-based analytics to improve and accelerate our cash management capabilities?