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To ensure financial operations working properly a successful working capital management helps financial chiefs take care of financing and management of Current Assets and Current Liabilities issues

To ensure financial operations working properly, a successful working capital management helps financial chiefs take care of financing and management of Current Assets and Current Liabilities issues that occur daily because both accounts involved major trade activities. Some big firms create a department to specifically take care of working capital issues. Typical examples of short-term obligations are salaries, payroll, taxes and vendor invoices. To achieve the goal, a good working capital management system is absolutely necessary; in fact, an effective working capital management also helps enhance financial efficiency and protect credit rating of a firm. To maintain a proper liquidity position, any company shall focus on managing short-term issues including inventory management as you presented. Product-based companies must pay attention to liquidity because simply, funds are tied up with inventory and incur various type of costs such as inventory holding cost and opportunity cost of tied up funds. Everyone, based on your research and study - What are recommended inventory management system for product-based companies?

 

Aug 26 2020 View more View Less

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