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: For instance, shortage of cash may result in incapacity of the firm to meet its short term obligations. Similarly, inadequate inventories may put production on hold and force the business to purchase raw materials at exaggerated prices. Hence, lack of working capital may result in business failure. However, adequate working capital gives a push to the business during the days in which there is less business activity. Hence, to produce goods without any obstruction and sustain sales, a business needs funds for inventories and accounts receivable. 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.