Working capital management, in any kind of business is the management of short-term health. There must always be cash present within the company for it to incur its day-to-day expenses,
Compensation for its suppliers, employees, and so forth. This kind of management is often referred to as the balance of cash flow to avoid any "cash crisis" and to keep operations smooth.
It also entails inventory management that, in simple terms, it refers to goods that are yet to be sold; accounts payable which are liabilities or what the company owes to others; and accounts receivable which are assets or what other people owe to the company. This form of management keeps businesses off the crunching cash and therefore maintains stability in their running. more