Published on February 13, 2014
The aim of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing AIM short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.
I C M E It is therefore very P important to put in place an excellent working O capital management R system to ensure your organization operates T optimally. Balancing your needs with obligations will A also help you to avoid N bankruptcy. Meeting Creditors Improve Reputation Improve Flow of Operation
Meeting Creditors An effective will help you meet your obligations when they fall due, thus, if creditors make immediate demands for their money, you are able to meet them.
Improve Reputation Being able to pay your creditors without fail will improve your reputation in your business environment, the creditors will become loyal to you.
Improve Flow of Operation A positive working capital will also enable your firm to pay its daily operation expenses such as wages bills and other overheads resulting in a smooth flow of operations without unnecessary stoppages.
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Journal of the American Heart Association (JAHA) is an authoritative, peer-reviewed Open Access journal focusing on cardiovascular and cerebrovascular disease