Working capital management

Working capital is the money related to the company’s short-term expenses. This revolves around inventory, short-term debt, and day-to-day operating expenses.

Working capital MANAGEMENT is a beneficial business tool to make use of current assets successfully and effectively. This to help the company sustain adequate cash flow to meet short-term obligations and goals.

Big or small, no matter the size of your business, working capital is an integral part to the long-term financial health of your company.

We all value and strive towards a well-managed and successful company. Aiming for any and every potential growth opportunity.

Benefits of positive working capital:

·        Improved liquidity

·        Operational efficiency

·        Increased profits

Just to name a few…

But as the saying goes, “too much of a good thing is bad”. An abundance of working capital could mean that you are not effectively investing and could lead to negative consequences.

It’s a balancing act you see.

MyBI has seen the value that comes with having proper structures in place and has made it our mission to help businesses grow through automated and reliable BI.

We have created a Dashboard just for you! To view your entire financial status from one place. This including a Working Capital Bubble. In the center of your Dashboard no less, making it hard to miss

. Differentiating between your amount of Debtors, Creditors, Cash Available and Inventory.

Working capital is crucial to understand and monitor closely if you want your business to survive. Luckily, it is also exciting and alive!

Working capital is so much more than just the cash in your bank. It indicates the history, present and even the future of your business.

Understanding Working Capital - a quick description and video on the MyBI website to give you an overview of working capital.