Title: 3 Working Capital Management Strategies For Your Business - QuickBooks
Headings: 3 Working Capital Management Strategies For Your Business
3 Working Capital Management Strategies For Your Business
What is Working Capital Management?
Strategies to Manage Working Capital
1. Inventory Management
2. Cash Management
3. Accounts Receivable Management

Content: It means that cash should neither be inadequate nor in excess. This is because inadequate cash would hold production. Whereas excessive cash will remain idle and impact the profitability of the business. Thus, a business needs to manage cash in order to manage its working capital. Now, the basic objectives behind cash management are: to make payments when they become due
to minimize idle cash
Hence, a business can follow the following strategies in order to manage cash efficiently: Business can prepare cash budgets in order to project cash flows. Cash budgets can help a business to plan and control the use of cash. A business needs to determine an optimum level of cash balance by comparing risk with profitability. Various methods are used to determine optimum level of cash.