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: Hence, a business should make every effort to reduce the cost of capital while maintaining optimum level of working capital. Finally, the time gap between maturity of debt or payments and the inflow of cash should be minimum. Bigger the gap, the higher is the risk involved. Strategies to Manage Working Capital
Different elements of working capital such as bills receivable, cash, inventory etc need to be taken care of in order to manage working capital of a business. Let’s understand how each of these components are managed individually to have an optimum level of working capital. 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.