Which working capital measures affect the balance sheet?

Many working capital measures have a direct impact on balance sheet items. For example, reducing accounts receivable increases liquidity, while reducing inventory decreases capital tied up in inventory. Changes in accounts payable also affect working capital. With supply chain finance solutions such as cflox pay, the obligation—depending on the specific structure and accounting criteria—can continue to be reported as trade payables rather than as a financial liability. As a result, the accounting impact differs from that of a traditional additional loan. The specific accounting treatment must always be assessed on a case-by-case basis.