Working Capital Management process is a key to survive competition

You need funds to manage your daily expenses like eating food, travelling, paying internet, electricity bills etc. In the same way companies also needs to manage their day to day operations which are expensive. these may include paying salaries to the employees, raw material cost, electricity charges, administrative, marketing expenses etc. Working capital is consumed to meet day to day obligations.

The capital which is used by the companies to run their daily operations is called working capital. If working capital is inadequate company may fail to meet its daily obligations creating cash crunch. Thus working capital management process helps maintaining optimal working capital for the companies to ensure smooth functioning. Click below to know more in detail.

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