Appropriate Management of Working Capital
Evolution of mankind has greatly influence the way good and services are exchanged in the market where old methods are replaced by new one. Considering increase needs of people that require them to engage in various activity to satisfy them, has lead to changes in the way they conduct their business to promote efficiency . There is no single person in the world who is self-sufficient, everyone need each other to satisfy his/he needs in one way or the other. The economic status of any given society is determined by the way it interacts with other society in exchange for good and services.
With improved industries production has been improved in a significant way that has rendered many people to engage in various production. One of the challenges that many companies experience is the availability of capital for the starters and working capital management for the already established companies. Companies have adopted new method of doing business by incorporating technology so as to ensure production and income is maximize for the company to realize growth and development. Human capital is very crucial in any development and growth of a company, in this case, companies are required to properly plan on how to incorporate this capital for their good.
Income in the company is important as it is brought about by the way capital invested generate income as a reward that determines the economic status of the company. Doing business have been influenced over the years due to improved sector of technology hence measures of capital being greatly interfered with. Banking institution to be at par with technology, there are many changes that have been made to promote their growth and development. For services to be considered user-friendly, for instance, online banking has been rendered to be user-friendly due to it easily accessibility. Financial management is very crucial to any given company for the purpose to ensuring its survival and minimal wastage, the company should ensure accountability of their finances.
Understanding how much company spent on its daily expenses over how much income it generate is crucial, since companies are able to have proper financial planning. One of the source of information that has rendered to be of great importance in planning in any given company is how good and services move in the market. Financial the crisis has always been a challenge to the human being, moreover, the vast changes of technology have rendered to be of great help due to updated information on how to deal with the crisis. nevertheless, studying the behavior of the various market structures in the market is usually easy due to the presence of vast information available on the online platform. Engaging on financial literacy to member of community can be easy due to mass information available on the online platform.