Working Capital control is one of the most important task of the Finance Manager in a business organization. Every business must pay its daily expenses.
Posts tagged as “Working Capital”
While we as business managers have already known how to solve Cash Flow problems, it is better to prevent the diseases than cure it.
The main aim when solving Cash Flow problems is to improve the cash position of the business, not to increase sales revenue or maximize profits.
Cash Flow Problems include primarily three things – poor Cash Inflows, increasing Cash Outflows and having negative Closing Balance.
Creditor Days measures the average number of days it takes a business to pay its suppliers who gave the business trade credit.
Debtor Days measures the average number of days it takes a business to collect money from its customers who bought products on trade credit.