Control of Current Liabilities

Accounts Payable can be managed by:

• paying early if discount offered to reduce the value of the liability or 

• waiting full payment period of trade credit (retaining cash for as long as possible)

• related to supply chain and COGS; 

Loans can be managed by: 

• monitoring costs of establishment, 

• interest rates and 

• ongoing charges 

Overdrafts need to be monitored:

• establishment costs, 

• fees, 

• interest rates, 

• withdrawal limits