Contents

• Introduction
• Understanding working capital management
• Importance of working capital management
• The management of working capital
• Improving working capital efficiency – Reduce inventory, Speed up receivable collections, Re-think payment terms
• Alternative approach – Operational alignment, Information sharing, Strategic coordination
• References

Description

Management Accounting is transforming into a powerful management tool to analyze the information to facilitate the process of effectively controlling the operations and decision making. These Management Accounting approaches and techniques are important for accomplishing the process of budgeting and planning via financial analysis and planning. Analytical skills and tools are required for financial statement analysis in assessing the companies’ financial position and performance. These are particularly beneficial for forecasting cash flows which is required for appraisal of capital projects and decide on the on viability of investment.