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: Thus, the survival or failure of business will depend on: adequacy of working capital
efficiency with which working capital is utilized
That is to say both inadequate and excessive working capital would undermine the profitability and general working of the business. What is Working Capital Management? The term working capital management refers to the management of current assets, current liabilities and association between them. It refers to the challenges that a business has to encounter while managing such current assets, current liabilities and their inter relationship. Therefore, a business needs to emphasize on two perspectives while managing working capital. First is the amount of net current assets or working capital
Second is the method of financing working capital
Therefore, funds are required in order to run day-to-day operations of the business. And a business needs to maintain optimum level of working capital in order to achieve the objectives of profitability and liquidity. Therefore, the goal of working capital management is to manage a business’ current assets and current liabilities in such a way so that a satisfactory level of working capital is maintained. Now, a business needs to consider certain principles while managing working capital.