Working Capital Management: The Secret To Business Success
- Topics:
- Working Capital
- Tags:
- Debtor,
- Finance,
- Managerial Accounting,
- Sales,
- Sales Force Management,
- Sales Strategy,
- TakingITGlobal,
- Working Capital,
- Working Capital Management
- Source:
- TakingITGlobal
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Overview: Working capital management involves the management of debtors, cash, creditors and stock. Credit is an unavoidable tool in modern business. This means that if you offer no credit you might end up having no sales. Offering lenient credit terms may add up to high sales and the sales may turn up to be bad debts. So how do you manage your debtors to avoid such a situation? Debtors constitute a substantial portion of current assets in many business entities and hence investment in them should be kept at an optimum level. Investment in debtors depends on the volume of credit sales and the period taken to collect the debts. These can be influenced through a change in credit policy.
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Format: HTML | Date: Nov 2005




