Components of Working Capital Management

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Different types of working capital in financial management have a certain set of components. Here is a look at the same:

Cash
Cash is one of the main components of working capital management. Cash deposits in all the company accounts must be checked. Tracking cash flow and requirements by forecasting and keeping track of the cash balances forms the basis of capital management.

Receivables
Companies should keep track of the receivables which includes keeping a venezuela phone number list check on the payments, managing the company’s credit policies, and improvising the collection processes.

Account Payables
This includes the amount to be paid to the vendors and suppliers. This aspect of working capital management should be handled strategically.

Inventory
This includes the total value of goods owned by a company that are ready for sale. This includes the products displayed in a showroom or retail store. It is important to manage the inventory levels efficiently to prevent the issues of overstocking or stockouts.