working capital management Working Capital Management

WORKING CAPITAL
MANAGEMENT
Working capital management is an important financial term. It
revolves around two major financial components, namely the
current assets and current liabilities. These two components
make up the working capital of a business.
Working capital management deals with the managerial
accounting strategies that monitor the current assets and
liabilities. This is essential for a business to maintain an
efficient operation of the company. An effective working
capital management ensures that the business always has a
sufficient cash flow to support its short-term operating costs
and debt obligations.