Every business needs adequate liquid resources in order to maintain day-to-day cash flow. It needs enough cash to pay wages and salaries as they fall due and to pay creditors if it is to keep its workforce and ensure its supplies.
Maintaining adequate working capital is not just important in the short-term. Sufficient liquidity must be maintained in order to ensure the survival of the business in the long-term as well. Even a profitable business may fail if it doesn't have adequate cash flow to meet its liabilities as they fall due.
On completion of this course you will:
- understand the meaning of working capital
- appreciate what working capital management relates to
- learn about some key liquidity ratios used to understand more about a business working capital position
- understand various techniques used to manage working capital.
Authored by: Neeta Major
Neeta has worked across both the private and public sectors within external audit, financial accounting, management accounting and internal audit. Neeta has been actively involved in the provision of governance, risk, value for money and fraud seminars to managers with a broad range of backgrounds (financial and non financial).
A CPD certificate of completion will be provided by BPP Professional Education Limited upon successful completion of the online course.
CPD Points: 1.5
CPD Duration (hours): 1.5
Access: 12 months from purchase date