https://www.taxtmi.com/article/detailed?id=17640 Profit and cash diverge because sales are recognised before collection while operating, financing and statutory obligations mature independently. The cash conversion cycle-inventory days plus debtor days minus creditor days-identifies how long working capital remains trapped; rapid growth magnifies the funding requirement. Liquidity discipline requires prompt invoicing and collections, inventory control, fair supplier terms, and a rolling cash forecast based on actual payment behaviour. GST, TDS, provident fund and other statutory dues should be prioritised. Borrowing and invoice discounting may bridge timing gaps but do not replace working-capital control. en-us Tue, 27 Oct 2026 13:49:07 +0530 Tue, 27 Oct 2026 13:49:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=17640 Profit and cash diverge because sales are recognised before collection while operating, financing and statutory obligations mature independently. The cash conversion cycle-inventory days plus debtor days minus creditor days-identifies how long working capital remains trapped; rapid growth magnifies the funding requirement. Liquidity discipline requires prompt invoicing and collections, inventory control, fair supplier terms, and a rolling cash forecast based on actual payment behaviour. GST, TDS, provident fund and other statutory dues should be prioritised. Borrowing and invoice discounting may bridge timing gaps but do not replace working-capital control. Articles Accounting - Auditing Tue, 27 Oct 2026 13:49:07 +0530 https://www.taxtmi.com/article/detailed?id=17640