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: 1. Inventory Management
Inventory is one of the important components of working capital of many businesses. The term inventory includes: Finished goods that a business offers for sale
Components that form part of finished goods (raw materials, work – in – progress etc)
Raw materials are the inputs used to manufacture goods that turn into finished products after some processing. On the other hand, finished goods are the products that are ready for sale. Now, the type of inventories and amount of components to be stocked depends upon the nature of business. To conclude, inventories form a crucial part of current assets of a business. Hence, a business needs to manage inventories efficiently and effectively. Management of inventories refer to investing an optimum amount of working capital in inventories. This means that the investment is neither too low nor too high.